PERSONAL FINANCE CHAPTER 3 KEY TERMS
Current Liabilities
Debts that must be paid within a short time, usually less than a year
Take-Home Pay
Earnings after deductions for taxes and other items; also called disposable income
Discretionary Income
Money left over after paying for housing, food and other necessities
Balance Sheet
A financial statement that reports what an individual or a family owns and owes; also called a net worth statment
Cash Flow Satement
A financial statement that summarizes cash recipts and payments for a given period
Safe Deposit Box
A privet storage area at a financial institution with maximum security for valubles
Budget
A specific plan for spending income
Liabilities
Amounts owed to others
Money Managment
Day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security
Cash Flow
The actual inflow and outflow of cash during a given time period
Surplus
The amount by which the actual spending is less than planned spending.
Budget Varience
The difference between the amount budgeted and the actual amount received or spent
Insolvency
The inability to pay debts when they are due because liabilities far exceed the value of assets
Assets
cash and other property with a monetary value
Income
inflows of cash to an individual or a household
Deficit
the amount by which actual spending exceeds planned spending