Chapter Review

Front 1

money management

Back 1

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

Front 2

safe deposit box

Back 2

a small secure or safe storage compartment that you can rent in a bank.

Front 3

personal financial statement

Back 3

gives information about your current financial position ans presents a summary of income and spending.

Front 4

personal balance sheet

Back 4

also known as a net worth statement is a financial statement that shows what you own and what you owe.

Front 5

net worth

Back 5

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

Front 6

assets

Back 6

are any items of value that you own such as cash real estate personal possessions and investments.

Front 7

wealth

Back 7

is property that has a money value or an exchangeable value.

Front 8

liquid assets

Back 8

are cash and items that can be quickly converted to cash.

Front 9

real estate

Back 9

which is land and any structures that are on it.

Front 10

resolve

Back 10

hi

Front 11

secure

Back 11

or safe storage compartment that you can you can rent in a bank.

Front 12

evaluate

Back 12

or determine the value of your financial situation you first need to create a balance sheet

Front 13

foundation

Back 13

or basis for carrying out your financial goals

Front 14

encounter

Back 14

or experience unexpectedly unexpected expenses an increase in your income and medical expenses.

Front 15

cultivate

Back 15

or promote the growth of the savings habit at an early age.

Front 16

market value

Back 16

or the price at which property would sell.

Front 17

liabilities

Back 17

are the debts that you owe.

Front 18

insolvency

Back 18

is the inability to pay debts when they are due.

Front 19

cash flow

Back 19

refers to the movement in and out your wallet and or bank account.

Front 20

income

Back 20

income includes your paycheck from a job an allowance from your parents and interest earned on a savings or checking account or other investments.

Front 21

take home pay

Back 21

or net pay is the amount of income left after taxes and other deductions are subtracted form your gross pay

Front 22

discretionary income

Back 22

is the money you have left after paying for your essentials such as rent,utilities,clothing,transportation,and medications.

Front 23

surplus

Back 23

or extra money that you can spend or save depending on your financial goals and values.

Front 24

deficit

Back 24

which means you spend more than you received.

Front 25

budget

Back 25

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

Front 26

budget variance

Back 26

is the difference between the budgeted amount and the actual amount spent.