| A | B |
|---|
| Purpose of Budget | To plan your spending & saving so you won't have to borrow money to meet your needs. |
| A Good Budget | Your money is stretched to meet present & future needs, as well as, a few wants. |
| Financial Plan | A plan to use money by spending & saving for now & the future. |
| Risk | How safe your money is. |
| Return | Refers to how much your money grows or shrinks. |
| Bank Savings Account | The safest (lowest risk) place to put your money with a low return, & full access. |
| Money Market Funds | You get more of a return than a savings account, but it is a higher risk. |
| Money Market Funds | Many investments are made under the account and are usually short-term, like bonds. |
| C.D. | Certificate of Deposit |
| Certificate of Deposit | You put your money in a bank for a specified time. The interest is fixed and you can't touch the money during the specified time. |
| Bonds | A loan you make to the government or a company in which they promise to pay you back with interest in a specified amount of time. |
| Mutual Fund | An account that invests your money in a pool of many stocks. You share these stocks with many other people. |
| Checks | A piece of paper that promises to pay instead of paying cash. |
| Credit | Permission to borrow money. |
| fixed expense | Regular cost that is usually the same or about the same each time you pay it. |
| flexible expense | A cost that varies each time you pay it. |
| Gross income | The money you make before taxes are taken out. |
| Net income | The money you take home after taxes. |
| Stocks | A piece of a company that you own. |
