Business 28

Inflation

A general increase in the cost of goods and services is called ________ .

Priorities

A good budget helps people set _________ for spending and saving, and it also helps track their money.

Money management

A method of planning to get the most from one's money is called _________ .

Deductions

Amounts that are taken out of your pay before you receive your paycheck are called _________ .

Limit

Diversification of your assets is one way to ________ risk.

Fixed expenses

Expenses that occur regularly and are regularly paid are called _________ .

Surplus

If you spend less than you budgeted you will have a budget _________ .

Less than $1000

If your gross pay for one week is $1,000, your net pay will be _________ .

Opportunity cost

Part of the ________ of going to college is the money you would have made at a full-time job.

Money

Personal finance refers to all the things in your life that involve ________ .

Seven

Planning a budget involves _________ steps.

Reach your goals

Planning your personal finances is important because it will help you ________ .

Net pay

Take home pay is another name for _________ .

liquidity

The ability to easily convert your financial resources into cash without loss in value is called ________ .

Variance

The difference between a budgeted amount and the actual amount you spend is called a budget _________ .

Six

The financial planning process has ________ steps.

Set goals

The first step in the budgeting process is _________ .

Determining your current situation

The first step in the financial planning process involves ________ .

reviewing and revising your plan

The last step in the financial planning process involves ________ .

Trade off

What you give up when you make one choice instead of another is sometimes called a _____