| A | B |
|---|
| needs | things needed for survival, such as food, water, clothing, shelter, and medical care |
| wants | things people desire for reasons beyond survival and basic comfort |
| financial resources | money or other items of value that are used to acquire goods and services |
| cash inflows | income from your job, investments, and other sources |
| cash outflows | expenses, or items for which you must spend money |
| assets | money and items of value that you own |
| liabilities | debts that you owe |
| net worth | the difference between your assets and liabilities |
| trade-off | giving up one option in exchange for another |
| opportunity cost | the value of your next best option--what you are giving up |
| budget | a spending and saving plan based on expected income and expenses |
| fixed expenses | costs that do not change each month |
| variable expenses | costs that can go up and down each month |
| charitable giving | the act of donating money or time to a cause in which you believe |
| variances | the differences between planned amounts and actual amounts |
| manual records | information recorded in hard-copy format using pen and paper |
| electronic records | soft-copy formats of your financial information stored on your computer |
| spreadsheet software | a computer program that allows you to insert numbers and formulas to compute amounts and then easily change them later as needed |
| encryption | the process of converting data to a coded form |
