| A | B |
|---|
| A financial plan for income and expenses | budget |
| Spending more than you can afford | overspending |
| Money you earn | income |
| Spending less than you earn | living within your means |
| A successful business does this | Makes more money than it spends |
| money you make at a job | earnings |
| money you put away and don’t spend | savings |
| money you owe to people or banks | debt |
| money set aside for unexpected needs | emergency fund |
| things you need to survive, such as food, water, clothes, & shelter | needs |
| extra things you do not need to survive | wants |
| What you give up when you choose something else | opportunity cost |
| Something you can budget, so you can do the things you want or need to do. | your time |
| Someone who knows the difference between a need and a want | a good money manager |
| money you spend | expenditures/expenses |
| This plan includes ways to save money, spend money & reserves for emergencies | Personal Finance |
| When income is more than Expenditures | Profit |
