| A | B |
|---|
| financial planning | A process of tracking and anticipating income and expenditures |
| financial goal | A specific aim to be accomplished with the use of financial planning |
| continual | Ongoing, without ending |
| cyclical | Occurring in a cycle, with steps repeated in sequence over and over |
| wealth | Having a large amount of money or property |
| living within one’s means | Being able to pay all expenses with available income |
| financial statement | A document or tool that shows personal financial information/data |
| balance sheet | A financial statement that shows the assets, liabilities, and net worth of an individual or family on a set date |
| asset | Anything with monetary value that a person owns |
| liability | Anything that is owed to someone else; a debt |
| net worth | The amount of money remaining when total liabilities are subtracted from total assets |
| income and expense statement | A financial statement that shows all income and expenses of an individual or family during a specific time period, usually a month or a year |
| cash flow | The income and expenses of an individual or family during a time period |
| income | Total earnings received |
| expense | Any expenditure; anything that costs money |
| net gain | The amount of money one has after subtracting expenses from income |
| net loss | The amount of additional money needed when expenses are greater than income |
| spending plan | A financial statement used to plan income and expenses for a future time period; also known as a budget or financial plan |
