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20 Cards in this Set
- Front
- Back
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another term for what you own |
assets |
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another term for what you owe |
Liabilites |
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how do we calculate Net worth? |
Assets - Liabilities |
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What kind of assets can easily be converted to cash? |
Liquid Assets |
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A statement that reports what one owns and owes
aka Net Worth Statement |
Balance Sheet |
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Statement that summarizes cash receipts and payments for a given period
AKA Personal Income |
Cash Flow Statement |
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Specific plan for spending income |
Budget |
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What is a fixed versus variable expense |
fixed- stays the same variable- changes |
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-Set financial goals -estimate income -budget emergency fund and savings -budget fixed expenses -budget variable expenses -record spending amounts -review spending and saving patterns
are characteristics of what? |
a healthy budget |
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what are saving techniques that can work? |
1.Each pay day deposit amount into savings
2. pay roll deduction, direct deposit amount automatically
3. Saving coins or spending less |
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when actual spending is less than planned spending it is a ___________? |
Surplus |
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When actual spending is greater than planned spending it is a _____________? |
Deficit |
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debts that must be paid within a short time, usually less than a year |
current liabilities |
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debts that are not required to be paid in full until more than a year from now |
Long - Term Liabilities |
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inability to pay debts when due because liabilities far exceed the value of assets |
Insolvency |
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actual inflow and outflow of cash during a given time period |
cash flow |
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inflows of cash to an individual or household |
incom |
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earning after deductions for taxes and other items: also called disposable income |
Take Home Pay |
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Money left over after paying for housing, food and other necessities |
Discretionary Income |
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Specific plan for spending income; also called spending plan |
budget |
