Personal Finance Vocab: Section 3.2
liabilities
debts that you owe
surplus
extra money that can be spent or saved, depending on a person's financial goals and values
real estate
land and any structures that are on it, such as a holuse or any other building that a person or family owns
personal balance sheet
or a net worth statement, is a financial statement that lists items of value owned, debts owed, and a person's net worth
take-home pay
or net pay, is the amount of income left after taxes and other deductions are taken out of your gross pay
market value
price at which property would sell
net worth
the difference between the amount that you own and the debts that owe
deficit
the financial situation that occurs when more money is spent than is earned or received
discretionary income
the money left over after paying for the essentials, such as food, clothing, shelter, transportation, and medication
cash flow
the money that actually goes into and out of your wallet and bank accounts
income
the money you recieve
liquid assets
cash and items that can be quickly converted to cash
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 liabilites are greater than assets
wealth
an abundance of valuable material possessions or resources
assets
any items of value that an individual or company owns, including cash, property, personal possessions, and investments