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20 Cards in this Set

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another term for what you own


another term for what you owe


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


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 ___________?


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


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


actual inflow and outflow of cash during a given time period

cash flow

inflows of cash to an individual or household


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