| A | B |
|---|
| Budget | Allows you to meet your personal goals with a system of saving and wise spending |
| Fixed Expense | Occurs on a regular basis and are the same amount |
| Variable Expense | Living costs that differ each time and may not be easy to estimate |
| Allowance | The amount of money you plan to use for a certain budget category |
| Budget Variance | The difference between budgeted amount and actual spending |
| Deficit | Occurs when actual spending is greater than the budgeted amount |
| Surplus | Occurs when actual spending is less than budgeted amount |
| Check-Cashing | Charge a percent of the amount of the check to get your money |
| Payday Loans | A loan until your next payday. You write a check for the amount plus the interest rate charged |
| Pawn Shops | Loans at a very high interest for the value of goods |
| Rapid Tax Refund | You pay someone to prepare your taxes and you receive your tax return |
| Rent-to-Own | When you rent appliances or other large ticket items until you own them. |
| FDIC | Insures most savings, checking, and other deposit accounts for up to $100,000 per depositor per institution. |
| Interest | The price paid for using someone else's money |
| Interest Rate | The price paid for using someone else's money stated as a percentage. |
| Simple Interest | Interest earned and paid out to the depositor |
| Compound Interest | Interest earned when perviously earned interest is left on deposit to earn additional interest. |
| Compounding | Leaving interest earned on deposit to earn more interest |
| Set financial goals | The first step to the budgeting process |
| Plan budget categories | The second step to the budgeting process |
| Maintain financial records | The third step to the budgeting process |
| Evaluate budget | The final step to the budgeting process |
| Certificate of Deposit | A deposit account where you earn higher interest because you promise to keep your money in the account for a set period of time |
| Opportunity Cost | The cost of an alternative that must be forgone in order to pursue a certain action. |
| Trade off | The cost of what you've given up |
