| A | B |
|---|
| Money Management | Refers to the day to day financial activities associated with using limited income top satisfy your unlimited wants and needs |
| Estate Planning | Involves the accumulation and management of property during one's lifetime and the distribution of one’s property at death. |
| Net Worth | The difference between a person’s assets and liabilities |
| Cash flow statement | Reports net wages and other income along with spending for a period |
| Direct deposit | The process by which funds are deposited electronically and available automatically for your use |
| discrepancies | Differences between actual and budgeted performance |
| Expenses | Costs of operating a businesses |
| Financial performance ratios | Comparisons of a company's financial elements that indicate how well the business is performing |
| Budget | Allows you to meet your personal goals with a system of saving and wise spending |
| Fixed expenses | Costs that occur on a regular basis and are the same amount each time |
| Variable expenses | Living costs that differ each time and may not be as easy to estimate |
| Allowance | Amount of money you plan to use for certain budget category |
| savings | Saving accounts, govt bonds, stocks, and other investment |
| Food | Food eaten at home and meals eaten away |
| Clothing | Clothing, shoes, dry cleaning, and repairs |
| Household | Rent, mortgage, property taxes, insurance, utilities,etc |
| Transportation | Auto payments, insurance, operating costs, maintenance, repairs, |
| Health and Personal Care | Medical and dental expenses, medications, eye-glasses, health insurance, etc |
| Recreation and Education | Books and other reading materials, theater tickets, concerts, etc |
| Gifts & Contributions | Charitable contributions and personal gifts |
| Budget variance | Any difference between budget item amounts |
| Tax | A charge imposed by govt to finance public services. |
| Earned Income | Wages, salary,commission,fees,tips,and bonuses. |
| Investment Income | Earnings from dividends, interest, and rent |
| Tax Deduction | An amount that reduces taxable income |
| Exemption | Tax deduction for the taxpayer, a spouse, and each dependent |
| Taxable Income | Amount on which taxes are calculated |
| Tax Credit | Amount subtracted directly from taxes owed |
| Financial Plan | A report that summarizes your current financial condition, acknowledges your financial needs, and sets a direction for your future financial activities |
| Individual Retirement Account | Tax sheltered retirement plan, people can annually invest earnings up to a certain amount. |
| Tax Deferred | Investment earnings will be taxed later, after retirement |
| Personal assets | Items of value |
