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