| A | B |
|---|
| Fixed Expense | Expenses that stay the same month to month - Examples: Rent, Cable Bill |
| Variable Expense | Expenses that vary from month to month. Examples: Groceries, Clothing |
| Intermittent Expense | Expenses that occur various times throughout the year. Examples: Tuition Payments, Car Repairs |
| Discretionary Expense | Expenses for things we don't need. Examples: Eating Out, Movies, Gifts & Candy |
| Irregular Income | Income fluctuates from month to month. |
| 70% | Percentage of people living paycheck to paycheck. |
| Sinking Fund | Setting money aside over time to pay for a big purchase. |
| Budget | A written cash flow plan. |
| Loan | A debt evidenced by a "note," which specifies the principal amount, interest rate, and date of repayment. |
| Interest | A fee paid by a borrower to the lender for the use of borrowed money. |
| Recession | A period of temporary economic decline during which trader and industrial activity are reduced; generally identified by the fall in gross domestic product (GDP.) |
| Emergency Fund | $500 set aside, the goal of the First Foundation. |
| Interest Rate | Percentage paid to a lender for the use of borrowed money, or the percentage earned on invested principal. |
| Debt | An obligation of repayment owed by one party to a second party. |
| Overdraft | Occurs when money is withdrawn from a bank account and the available balance goes below zero. |
| Budget | A written cash flow plan |
| Impulse Purchase | An item that is bought without previous planning or consideration of the long-term effects. |
| Compound Interest | Interest paid on interest previously earned. |
| Five Foundations | The five steps to financial success. |
| Zero-Based Budget | A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero. |
