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20 Cards in this Set

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another term for what you own

assets

another term for what you owe

Liabilites

how do we calculate Net worth?

Assets - Liabilities

What kind of assets can easily be converted to cash?

Liquid Assets

A statement that reports what one owns and owes



aka Net Worth Statement

Balance Sheet

Statement that summarizes cash receipts and payments for a given period



AKA Personal Income

Cash Flow Statement

Specific plan for spending income

Budget

What is a fixed versus variable expense

fixed- stays the same


variable- changes

-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

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

when actual spending is less than planned spending it is a ___________?

Surplus

When actual spending is greater than planned spending it is a _____________?

Deficit

debts that must be paid within a short time, usually less than a year

current liabilities

debts that are not required to be paid in full until more than a year from now

Long - Term Liabilities

inability to pay debts when due because liabilities far exceed the value of assets

Insolvency

actual inflow and outflow of cash during a given time period

cash flow

inflows of cash to an individual or household

incom

earning after deductions for taxes and other items: also called disposable income

Take Home Pay

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

Discretionary Income

Specific plan for spending income; also called spending plan

budget