| A | B |
|---|
| disposable income | the money you have left to spend after taxes are paid |
| financial plan | a set of goals for spending, saving, and investing the money you earn |
| budget | a spending and savings plan based on your expected income and expenses |
| fixed expenses | cost you are obligated to pay at specific times, regardless of other events |
| variable expenses | cost that vary in amount and type, depending on events and the choices you make |
| assets | valuables that a person own |
| liabilities | amount of money owed to others or debt |
| net worth | assets - liabilities |
| solvent | assets are greater than liabilities; in a favorable financial position |
| insolvent | liabilities are greater than assets; in a poor financial position |
| personal property inventory | a list of valuable items you own, their purchase prices, and approximate value |
| contract | a legally enforceable agreement between 2 or more parties |
| counteroffer | a new offer |
| consideration | anything of value exchanged as part of a contract |
| competent parties | people who are capable of agreeing to a binding offer |
| negotiable instrument | an uncoditional written promise to pay a specified sum of money upon demand of the holder |
| co-signer | a person who promises to pay the note if the maker fails to pay |
| warranty | a statement about a products qualities or performance that the seller assures the buyer are true |
| spreadsheet | a computer program that organizes data in columns and rows and can perform calculations using data |
| database | a computer program that organizes data for easy search and retrieval |
