| A | B |
|---|
| Expenses that do not change from one period to another and are in exact amounts. | Fixed Expenses |
| The process of defining goals, developing a plan to achieve them, and putting the plan into action. | Financial Planning Process |
| The process of considering and analyzing information related to personal and financial goals to determine an action plan. | Decision Making |
| Consists of (1) setting ogals; (2) anaylzing information; (3) creating a plan; (4) implementing the plan; and (5) monitoring and maoifying the plan. | Financial Planning Steps |
| Consists of (1) identifying the goal; (2) gathering information; (3) analyzing outcomes; (4) examining alternatives; (5) making a decision; and (6) evaluating the results. | Decision Making Steps |
| Consists of money coming in to an individual or net pay. | Cash inflow |
| A specific statement of what you want to achieve, giving direction to your plan of action. | Goal |
| Consists of things of value or something that you own, such as a car, stereo system, etc. | Assets |
| Consists of something basic for your survival such as food, clothing and shelter. | Needs |
| Consists of something you desire to make your life more comfortable. | Wants |
| A belief or idea that you consider important or desirable. | Value |
| A goal that is less than a three month time frame; focuses on immediate satisfaction. | Short-Term Goal |
| A goal that focuses on a 3-month to 1-year period. | Medium-Term Gaol |
| A goal that focuses on more than 1 year of time and required delayed gratification. | Long-Term Goal |
| The willingness to give up something you want now in return for something better later. | Delayed Gratification |
| Expenses that change from time to time and you have control over them. | Variable Expenses |
| Goals that are specific, measurable, attainable, realistic, and time-bound. | Smart Goals |
| A plan for managing money during a given period of time and consists of savings and spending. | Budget |
| Consists of money owed to creditors. | Liabilities |
| How you handle money coming in and money going out. | Money Management |
| Gross pay minus deductions. | Net Income |
| Consists of source records for keeping up with income and expenses. | Personal Spending Record |
| The setting aside of money for future use or other investments. | Pay Yourself First |
| Consists of money left over from net income after all expenses. | Discretionary Income |
| Choosing one option over another one. | Opportunity Cost |
| Usually, is money you set aside for short-term goals. | Savings |
| Simply, a measure of the money you receive and the money you spend. | Cash Flow Statement |
| Provides a summary of one's financial conmdition. A list of assets, liabilities, and new worth (assets minus liabilities). | Balance Sheet |
| Any money coming in. | Income |
| Consists of a belief or idea that you consider important or desirable. | Values |
| The total amount of income from your wages or salary before payroll deductions. | Gross Pay |
| Money paid for goods and services. | Expenditures |
| A budget that estimates income and expenses from the beginning of the business until it becomes profitable is called: | Start-up Budget |
| Comparing the price, quality, and services associated with one product with those of another product is called: | Comparison Shopping |
| When preparing a personal budget, the total income might include interest income and: | Wages |
| One of the BEST methods for maintaining financial records is the use of a/an: | Checking Account |
| To be efgfective, a budget MUST include allowances for fixed expenses and: | Savings |
| An extimate of actual money receives and paid out or a specific time period is called a/an: | Cash Budget |
| A statement that business owners review to determine how their business is performing is called: | Financial Statement |
| Items of value owned by a person or business: | Assets |
| This spending might inprove a person's standard of living. | Saving for future and unexpected expenses. |
| Saving on a regular basis is likely to have this effect on a person's standard of living. | Improves it in the long run. |
| This factor helps keep prices at a resonable level. | Competition among businesses. |
| Reasons to adjust a budget: | Family situation, Lifestyle choices, and inflation. |
| This sheet lists assests and liabilities. | Balance Sheet |
