EPF - Module 5 Topic 3
Gross Pay
Income before any taxes or other deductions are withheld.
Discretionary Income
Money left over after paying for housing, food, and other necessities.
Net Worth
The total value of a persons assets minus their obligations.
Budget
A plan for making and spending money.
Deductions
Items that are subtracted from a your paycheck (i.e., state taxes, federal taxes, health insurance, and retirement contributions).
Income
The amount of money you bring in to your home.
Deficit
A amount of money that is less than the amount needed.
Safe Deposit Box
A bank safe where documents, jewelry, or other valuables are kept.
Net Pay
Amount of income left after taxes and other deductions have been taken out. Spmetimes called take home pay.
Personal Balance Sheet
Also called a net worth statement, and shows what you own and what you owe.
Variable Expenses
Expenses that fluctuate and over which you have some control, such as food and entertainment.
Fixed Expenses
Expenses that remain the same from month to month
Surplus
Quantity supplied is greater than quantity demanded.
Disposable Income
Same as net pay. Money you have available to spend and save after taxes have been paid.
Liabilities
The debts you owe.
Budget Variance
The difference between the budgeted amount and the acutal amount spent.
Insolvent
The inability to pay your debts when they are due.
Expenses
What it costs for a person to live their lifestyle.
Assets
What you own.