| A | B |
|---|
| Fixed Expenses | Costs that are the same each month |
| Variable Expenses | Costs that change in amount and frequency |
| Discretionary Income | Income remaining after taxes, other mandatory charges, and expenditure on necessary items. |
| Budget | A spending plan that includes an estimate of income and expenditure for a set period of time |
| Short Term Goals | Something that a person wants to achieve within a year. |
| Long Term Goals | Something to be achieved past a year. |
| Income | Money earned from working or investments |
| Budget surplus | When Income exceeds Expenses |
| Budget Deficit | When Income is less than Expenses |
| Needs | Require (something) because it is essential or very important |
| Wants | Have a desire to possess or do something that is nonessential. |
| Assets | Anything that is owned |
| Liquidity | The ease to turn an asset into cash |
| Budgeting Steps | The procedure by which an individual creates and manages a financial plan. |
| Specific | The S in Smart Goals |
| Measurable | The M in Smart Goals |
| Attainable | The A in Smart Goals |
| Relevant | The R in Smart Goals |
| Timely | The T in Smart Goals |
| Net Worth | The difference between assets and liabilities. |
