| A | B |
|---|
| assets | Everything a person owns with a monetary value |
| check register system | a control system where expenses are tracked in a checkbook register which has been divided into spending plan categories |
| electronic spending plan system | a control syhstem that utilizes some type of electronic software |
| envelope system | a control system where an individual places the actual budgeted amount of cash into the specific envelope labeled for the expense |
| financial goal | specific objectives to be accomplished through financial planning |
| expense | money spent |
| financial planning | a tool used to achieve financial success based upon the development and implementation of financial goals |
| fixed expense | expenses that often have a fixed amount due each month, may be contractual, and are not easy to reduce or eliminate |
| flexible expense | expenses that vary each month in the amount owed, are not contractual, and do not have to be paid by a certain date |
| goal | the end result of something a person intends to acquire, achieve, do reach or accomplish |
| gross income | the total amount of money earned during a pay period before payroll deductions |
| Income | money earned |
| insurance | an arrangement between an individual and an insurance company to protect the individual against risk |
| liabilities | debts, or what is owed to others |
| need | an essentrial item required for life |
| net gain | the positive amount of money remaining after subtracting expenses from income |
| net income | the amount of an individual's take-home pay after taxes and other deductions have been taken out |
| net loss | the negative amount of money remaining after subtracting expenses from income |
| net worth | the amount of money left when liabilities are subtracted from assets |
| net worth statement | a financial statement that describes an individual or family's financial condition on a specified date |
| savings | portion of current income not spent on consumption |
| spending plan | a paper or electronic document used to record both planned and actual income through expenditures over a period of time |
| taxes | citizen charges by local, state, and federal governments |
| value | a fundamental belief or practice about what is desirable, whorthwhile, and important to an individual |
| want | something unnecessary, but desired |
| wealth | measurement of how much a person or household owns once all debts have been paid |
