| A | B |
|---|
| money management | A person's method of planning to get the most from his or her money. |
| safe-deposit box | A small, secure storage compartment that can be rented in a bank, usually for $100 a year or less. |
| personal financial statements | Documents that provide information about a person's current financial position and present a summary of that person's income and spending. |
| balance sheet | A financial statement that lists the items of value that a person owns, the debts that he or she owes, and his or her net worth; also called a net worth statement. |
| net worth | The difference between the amount that a person owns and the debts that he or she owes. |
| assets | any items of value that people own, including cash, property, personal possessions, and investments |
| liquid assets | cash and items that can be quickly converted to cash |
| real estate | land that a person or famiy owns plus anything that is on it, such as a house or any other building |
| market value | the price at which a property could be sold |
| liabilities | the debts that a person owes |
| insolvency | the condition that occurs when someone's liabilities are greater than his or her assets |
| cash flow | the money that actually goes into and out of a person's wallet and bank accounts |
| income | money that a person receives, such as a paycheck fro a job, an allowance from parents, or interest earned on a savings account |
| take-home pay | the amount of income left after taxes and other deductions are taken out of a person's gross pay also called net pay |
| discretionary income | the money left over after a person has paid for the essentials-food clothing, shelter, transportation, and medication |
| surplus | extra money that can be spent or saved, depending on a person's financial goals and values |
| deficit | the situation that occurs if a person spends more than he or she earns or receives |
| budget | a plan for using one's money in a way that best meets one's wants and needs |
| consumer price index | a measure of the changes in prices for commonly purchased goods and services in the United States |
| budget variance | the difference between the budgeted amount and the actual amount that one spends |
