| A | B |
|---|
| budget | an organized plan which matches your expected income to your expected expenses |
| income | any money that you receive |
| gross income | your total income before payroll deductions |
| payroll deductions | the amounts subtracted from your gross income, which results in your net income |
| taxes | fees placed on income, property, or goods to support government programs |
| net income | the amount of your paycheck after deductions are subtracted--also called "take home pay" |
| W-4 | federal government form that tells your employer how much to withold from your paycheck for taxes |
| W-2 | an earnings summary from your employer that you will need to file your taxes |
| expenses | the money that you spend on your needs and wants--money going out |
| fixed expenses | expenses that are normally the same from month to month |
| variable expenses | expenses that can change |
| cash management | the way that you handle money coming in and going out |
| "pay yourself first" | the principal of saving some money before paying other expenses |
| cost/benefit analysis | weighing the cost of a product or service against the benefit it will provide |
| savings | usually money set aside for short-term goals |
| investment | money set aside for future income, benefit, or profit to meet long-term goals |
| earned interest | the payment you receive for allowing a financial institution or corporation to use your money |
| assets | all the items of value that a person owns |
| consideration | something of value that each party to a contract must receive |
| database management | a computer program that stores, arranges, and manimpulates information as needed (such as Quicken) |
| cosigner | a person who promises to pay a note if the maker fails to pay |
| disposable income | the money you have left after required deductions, which you can spend or save as you wish |
| financial plan | an orderly program for spending, saving and investing your income |
| liabilities | money that you owe others, also called debts |
| mutual assent | agreement by two or more parties to the terms of a contract |
| negotiable instrument | a piece of paper with a written promise to pay, such as a check |
| spreadsheet | a computer document which sets numbers and words into chart format |
| warranty | an assurance of product quality or of responsiblility of the seller |
| net worth statement | a list of assets and liabilities or debts and the difference between the two |
