| A | B |
|---|
| Income | Money earned---from wages, salaries, tips, withdrawals from savings, interest earnings, scholarships, sales of properties or possessions, gifts, etc. |
| Expense | Money spent---for both fixed and flexible expenses; an expenditure |
| Anticipated | An amount of income or expense that is expected, planned, or projected |
| Actual | An amount of income or expense that was really earned or spent |
| Fixed expense | An expense that is due by a certain date, often agreed upon in a contract, and difficult to change in a short time |
| Flexible expense | An expense that is not due by a certain date and is easy to reduce or eliminate |
| Specific financial goal | A financial goal that states exactly what is to be done with money |
| Measurable financial goal | A financial goal that gives an exact dollar amount |
| Attainable financial goal | A financial goal for which one can determine how to reach it |
| Realistic financial goal | A financial goal that is affordable and do-able |
| Time-bound financial goal | A financial goal that states exactly WHEN the goal needs to be reached |
| Organize spending plan | Determine appropriate recordkeeping format, select categories and time period |
| Decide | Make realistic decisions and estimates for categories of the spending plan |
| Implement | Put the spending plan into effect |
| Control | Keep accurate records while the spending plan is being implemented |
| Evaluate | Determine how well the spending plan process has worked |
| Envelope system | Placing exact amount of cash for an expense in a labeled envelope |
| Spending plan | A financial statement used to track expenses from day to day |
| Check register system | Tracking expenses in a checkbook register divided into spending plan categories |
