EPF - Module 5 Topic 3

Gross Pay

Income before any taxes or other deductions are withheld.

Discretionary Income

Money left over after paying for housing, food, and other necessities.

Net Worth

The total value of a persons assets minus their obligations.

Budget

A plan for making and spending money.

Deductions

Items that are subtracted from a your paycheck (i.e., state taxes, federal taxes, health insurance, and retirement contributions).

Income

The amount of money you bring in to your home.

Deficit

A amount of money that is less than the amount needed.

Safe Deposit Box

A bank safe where documents, jewelry, or other valuables are kept.

Net Pay

Amount of income left after taxes and other deductions have been taken out. Spmetimes called take home pay.

Personal Balance Sheet

Also called a net worth statement, and shows what you own and what you owe.

Variable Expenses

Expenses that fluctuate and over which you have some control, such as food and entertainment.

Fixed Expenses

Expenses that remain the same from month to month

Surplus

Quantity supplied is greater than quantity demanded.

Disposable Income

Same as net pay. Money you have available to spend and save after taxes have been paid.

Liabilities

The debts you owe.

Budget Variance

The difference between the budgeted amount and the acutal amount spent.

Insolvent

The inability to pay your debts when they are due.

Expenses

What it costs for a person to live their lifestyle.

Assets

What you own.