Personal Finance Budgeting Vocabulary

surplus

extra money that can be spent/saved

carefully planned, practical, flexible, written/easily accessible

characteristics of a good budget

periodic expenses

costs that occur on an irregular basis, rather than monthly

liabilities

debts that you owe

fixed expenses

expenses that do not change month to month

variable expenses

expenses that vary month to month

cash flow statement

lists the money that goes in and out of your wallet

discretionary income

money left over after paying for essentials

PYF

pay yourself first

net worth

personal balance sheet is related to __________

current liabilities

short term debts that have to be paid within one year

net pay

the amount a person makes performing their job after deductions

net worth

the difference between the amount that you own and the debts that you owe

opportunity cost

the loss of potential gain from other alternatives when the alternative is chosen

cash flow

the money that actually goes in and out of your wallet

income/spending

cash flow statement is related to ________

personal financial statement

a document that provides information about an individual's current financial position and presents a summary of income and spending

insolvency

a financial state that occurs if liabilities are greater than assests

personal balance sheet

a financial statement that lists items of value owned, debts owed, and a person's net worth

consumer price index

a measure of the changes in prices for commonly purchased goods and services in the US

budget

a plan for using money to meet wants and needs

safe deposit box

a small secure storage compartment that you can rent in a bank

wealth

an abundance of valuable material possessions/resources

assets

any items of value that an individual owns, including cash, property, personal possessions, investments

liquid assets

cash and items that can be quickly converted to cash