Chapter 12 Vocab

Liabilites

Debts that you owe.

Evaluate

Determine the value of.

Net Worth

Difference between the amount you own & debts you owe.

Personal Financial Statement

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

Personal Balance Sheet

A financial statement that shows what you own and debts that you owe. also called a net worth statement.

Budget

A plan for spending and investing your money to meet your needs and wants.

Safe-Deposit Box

A small, secure storage compartment that you can rent in a bank, usually for $100 a year or less.

Assests

Any items of value that you own.

Foundation

Basis.

Liquid Assets

Cash and items that can be quickly converted to cash.

Encounter

Experience unexpectedly.

Surplus

Extra money you can spend or save, depending on your financial goals and values.

Real Estate

Land and any structures that are on it, such as a house or any other building that a person or family owns.

Income

Money earned from investments and employment.

Discretionary Income

Money left after paying essentials.

Cash Flow

Movement of cash. Money coming in and going out.

Cultivate

Promote the growth of.

Wealth

Property that has a money value or an exchangeable value.

Resolve

Reach a decision about

Secure

Safe.

Deficit

Spending more than you have received.

Take-Home Pay

The amount of income left after taxes and other deductions are taken out of your gross pay. Also called net pay.

Money Management

The day-to-day financial activities necessary to get the most from your money.

Budget Variance

The difference between the budgeted amount and the actual amount that you spend.

Insolvency

The inability to pay debts when they are due.

Market Value

The price at which property would sell.