Econ
Are cash and other tangible property with a monetary value
Assets
A net worth statement or statement of financial position, reports what you own and what you owe
Balance sheet
Our spending plan is necessary for successful financial planning.
Budget
Is the difference between the amount budgeted and the actual amount received or spent
Budget variance
Is the actual inflow and outflow of cash during a given time period
Cash flow
Also called a personal income and expenditure statement is a summary of cash receipts and payments for a given period such as a month a year
Cash flow statement
Are debts you must pay within a short time usually less than a year like medical bills or tax payments
Current liabilities are
Spending exceeded their planning
Deficit
Is left over money after paying for housing, food, and other necessities
Discretionary income
Is the inflows of cash for an individual or a household
Income
Is the inability to pay debts when they are due; it occurs when a person's liabilities far exceed available assets EX: bankruptcy
Insolvency
Are amounts owed to others but do not include items not yet due, such as next months rent
Liabilities
Are cash and items of value that can easily be converted into cash
Liquid assets
Debts you do not have to pay in full until more than a year from now ex: loans
Long term liabilities
Day to day financial activities necessary to manage current personal economic resources while working toward lon term financial security
Money management
Is the difference between your total assets and your total liabilities
Net worth
A private storage area at a financial institution with maximum security for valuables
Safe deposit box
Spending less than they have planned
Surplus
Also called net pay is a persons earnings after deductions and taxes and other items
Take home pay