Budget Vocabulary

Front 1

Assets

Back 1

Anything of value owned by a person or business.

Front 2

Balanced Budget

Back 2

Money coming in is equal to money going out.

Front 3

Budget

Back 3

A spending plan and a list of spendable funds.

Front 4

Deficit

Back 4

Spending more than you have from income.

Front 5

Discretionary Spending

Back 5

The spender has a choice, they don't have to spend money.

Front 6

Disposable Income

Back 6

Amount left after deductions (e.g. taxes)have been taken from your gross pay. Also known as Net Income.

Front 7

Emergency Funds

Back 7

Money set aside or budgeted for unanticipated but necessary expenditures.

Front 8

Fixed Expenses

Back 8

Expenses that do not generally change from month to month.

Front 9

Goals

Back 9

Any future plans or objectives that require specific financing.

Front 10

Investment

Back 10

Property or another possession acquired for future financial benefit.

Front 11

Liability

Back 11

Financial obligation or debt for which a person is responsible.

Front 12

Nondiscretionary Spending

Back 12

No choice, spender must pay (e.g. income tax).

Front 13

Needs

Back 13

Goods and services an individual must have to survive.

Front 14

Net Worth

Back 14

Total assets minus total liabilities.

Front 15

Opportunity Cost

Back 15

The cost of passing up the next best alternative.

Front 16

Occasional Expense/Periodic Expense

Back 16

Expenditure of money that does not occur on a regular basis.

Front 17

Scarcity

Back 17

Limited resources and unlimited wants.

Front 18

Surplus

Back 18

The amount that income exceeds expenditure.

Front 19

Trade-offs

Back 19

Giving up one want in order to satisfy another.

Front 20

Variable Expenses

Back 20

Expenses that vary from month to month (e.g. food, clothes).