| A | B |
|---|
| Asset | Items of Monetary Value a person or household owns |
| Expense | Money spent |
| Income | Money received |
| Investment asset | Financial assets purchased with the hope that they will generate income and appreciate value to make it possible to sell at a higher price in the future |
| Liability | A debt or obligation owed to others |
| Market value | The amount you could relistically sell an asset for today |
| Market asset | Assets that can be quickly and easily convrerted into cash |
| Net worth | A measure of financial wealth and indicates the monetary value of all possessions that a person or household owns, minus the total amounts owed to others |
| Statement of Financial Position | A financial statement that describes an individual or family’s financial condition on a specified date by showing assets, liabilities, and net worth |
| Tangible asset | Personal property that was purchased to create a lifestyle or improve your life |
| Wealth | A measurement of how much a person or household owns once all debts have been paid |
| Gross Income | An individual’s income earned as salary or wages before taxes and other deductions |
| Income and Expense Statement | Lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year |
| Insurance | A product that transfers risk from an individual to an insurance company or organization |
| Mortgage | A payment, usually monthly, applied to the balance of a home loan used when purchasing housing |
| Net Gain | When income is greater than expenses |
| Net Income | Take home pay |
| Net loss | When expenses are greater than income |
| Savings | The portion of current income not spent on consumption |
