Chapter 2 - Personal Financial Management
Loan
A large debt that is paid in smaller amounts over a period of time and has interest added to it.
Gross Income
Amount of money in a paycheck before paying taxes or other deductions.
Liability
An obligation to pay what you owe like a car loan.
A __________ is a detailed plan for a specific time period for specifying your financial goals.
Budget
A detailed credit history on an individual is called a _________________.
Credit Report
_________ is money you owe.
Debt
Credit Report
Detailed credit history on an individual; details balances and payments on current and past credit cards and loans.
Budget
Detailed financial plan used to allocate money for a specific time period.
Flexible Expenses
Expenses that change from month to month like food and utilities.
Fixed Expenses
Expenses that do not change from month to month, like a monthly mortgage or rent payment.
Automatic Deduction Plan
Funds are automatically deducted from your paycheck and placed into your savings account so you do not have the opportunity to spend the money.
Assets
Items worth money that you own like a house, car, and furniture.
The small expenditures that add up to larger amounts are referred to as _____________.
Money Wasters
Income
Money coming in that could come from parents, grants, student loans, and/or a job.
Expense
Money going out or money spent
Debt
Money owed.
Your ____________ is the amount of money that is yours after paying off debts.
Net Worth
_________________ is the process of controlling your income and your expenses.
Personal financial management
Personal Financial Management
Process of controlling personal income and expenses.
Money Wasters
Small expenditures that you may not realize are consuming a larger portion of your income that expected.
Net Worth
The amount of money that is yours after paying off debt.
Net Income
The amount of money you have after all taxes and deductions are paid.
Interest
The cost of borrowing money and is the extra money you pay a lender.
Fair Isaac Corporation (FICO) Score
The most common credit rating.
When considering applications for credit lenders, consider your _________________________.
character, capacity, collateral, and condition
