| A | B |
|---|
| net worth | amount left when liabilities are subtracted from assets |
| net worth statement | describes an individual/family's financial condition on a specified date |
| pay yourself first | savings strategy where you set aside money each time paid |
| principal | original amoiunt of money saved or invested |
| return | profit or income generated by savings/investing |
| savings | portion of current income not spent on consumption |
| spending plan | document used to record both planned and actual income through expenditures over a period of time |
| standard of living | minimum necessities, comforts, orluxuries thought to be essential |
| time value of money | Money paid/received in future not equal to money paid/received today |
| trade-off | giving up one thing for another |
| wealth | mesaurement of how much a person/household owns once all debts have been paid |
