| A | B |
|---|
| Direct Deposit | the process by which funds are deposited electronically and available automatically for your use. |
| Cash flow Statement | a financial statement that reports net wages and other income along with spending for a period, such as for a month. |
| Expenses | The cost required for something |
| financial | the finances or financial situation of an organization or individual. |
| Budget | detailed plans for the financial needs of individuals, families, and businesses. |
| Fixed Expenses | costs that occur on a regular basis and are for the same amount each time. |
| Variable Expenses | living costs that differ each time and may not be as easy to estimate. |
| allowance | the amount of money you plan to use for a certain budget category. |
| savings | the storage of money for future use. |
| Food | Food eaten at home and meals eaten away from home |
| Clothing | clothing, shoes, dry cleaning & repairs |
| transportation | Auto payments, insurance, operating costs, maintenance, repairs, and public transportation |
| health and personal care | Medical and dental expenses, medications, eyeglasses, health insurance, and personal care costs |
| recreation and education | Books and other reading materials, theater tickets, concerts, vacations, school expenses, hobbies, and club dues |
| gifts and contributions | Charitable contributions and personal gifts |
| budget variance | any difference between actual spending and budgeted amounts. |
| tax | a charge imposed by a government to finance public services. |
| Earned Income | money from wages, salary, commission, fees, tips, and bonuses. |
| investment income | earnings from dividends, interest, and rent. |
| tax deduction | an amount that reduces taxable income. |
| Exemption | a tax deduction for the taxpayer, a spouse, and each dependent. |
| taxable income | the amount on which taxes are calculated. |
| tax credit | an 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 | a tax-sheltered retirement plan in which people can annually invest earnings up to a certain amount. |
| Personal assets | items of value. |
| Money Management | the day-to-day financial activities associated with using limited income to satisfy your unlimited needs and wants. |
| estate planning | planning for 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. |
| discrepancies | differences between actual and budgeted performance. |
