| A | B |
|---|
| budget | a plan for the use of money over time based on goals, expenses, and expected income. |
| income | any form of money received, such as an allowance, paycheck, or gift. |
| expense | the cost of goods and services one buys. |
| fixed expense | an amount that must be paid each budget period. |
| variable expense | a cost that changes both in the amount and time it must be paid. |
| discretionary expense | an amount spent for an item that a person could do without. |
| philanthropy | the act of giving money, goods, or services to meet the needs of others and to promote good causes. |
| cash flow statement | a summary of the amount of money received and the amount paid for goods and services during a specific time period. |
| net worth statement | a written record of an individual’s current financial situation. |
| asset | is an item of value that you own, such as cash, securities, real estate, and personal possessions. |
| liability | a current or future financial obligation. |
| wealth | an abundance of money and other assets. |
| record keeping | the process of setting up an organized system for your financial and legal documents. |
| legal document | a paper that can be filed with a court officer or used to uphold an agreement in a court of law, such as a mar- riage certificate, auto loan, mortgage, or credit card agreement. |
| money management software | a computer program used to or- ganize daily finances and keep track of income, spending, saving, debts, investments, and other financial data. |
