| A | B |
|---|
| Expense | Money spent |
| Gross Income | An individual's income earned as salary or wages before taxes and other deductions |
| Income | Money recieved |
| Income and Expense Statement | Lists and summarizes income and expense transactions that have taken plance over a specific period of time, usually a month or year |
| Insurnace | A product that transfers risk from a individula to an insurance company or oranization |
| 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 |
| Spending Plan | An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time |
| Asset | Items of monetary value a person or household owns |
| Investment asset | Financial assets purchased with the hope that they will generate income and appreciate in 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 realistically sell an asset for today |
| Monetary asset | Assets that can be quickly and easily converted into cash |
| Net Worth | A measure of financial wealth and indicates the monetary value of all possessions thata person or househod owns, minus the total amounts owed to others. |
| Statement of Financial Positon | A financial statement that descripes an infividual 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 |
