| A | B |
|---|
| assets | things of value |
| liabilities | debts owed |
| net worth | assets - liabilities |
| take-home pay | gross pay minus deductions |
| gross pay | total amount earned during a specific period |
| computer | equipment helpful in maintaining a budget |
| savings | safeguard against unexpected expenses |
| setting goals | first step in preparing a budget |
| budget | a plan for using your money |
| money management | process of planning how to get the most from your money |
| fixed expenses | same amount, paid every month |
| variable expenses | amount varies; person has some control over |
| statement of net worth | shows financial state of a person |
| mortgage | example of fixed expense |
| groceries | example of variable expense |
| setting goals | first step in planning a budget |
