chapter 3 vocab

safe-deposit box

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

surplus

extra money that can be spent or saved, depending on the persons financial goals and values.

personal financial statement

is a document that provides information about an individuals current financial position and presents a summary of income and spending.

personal balance sheet

is a financial statement that lists items of value owned debts owed, and a persons net worth.

wealth

is an abundance of valuable material possession resources.

money management

is planning how to get the most from your money.

take-home pay

is the amount of income left after taxes and other deductions are taken out of your gross pay.

net worth

is the difference between the amount that you own and the debts you owe.

deficit

is the financial situation that occurs when more money is spent than is earned or received.

insolvency

is the financial state that occurs if liabilities are greater than assets.

real estate

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

liabilities

the debts you owe.

discretionary income

the money left over after paying 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.

market value

the price at which property would sell.

assets

are any items of value that an individual or company owns, including cash,property,personal possessions, and investments.

liquid assets

are cash items that can be quickly converted to cash.

income

cash inflow is the money you receive, or your income.