| A | B |
|---|
| life span | the time between birth and death |
| money management software | a computer program used to organize daily finances and keep track of income, spending, savings, debts, investments and other financial data |
| budget | a plan for the use of money over time based on goals, expenses, and expected income |
| spreadsheet | a software program that formats data in columns and rows and can perform calculations |
| income | any form of money received |
| expense | the cost of goods and services purchased |
| fixed expense | set amount that must be paid each budget period (usually monthly) |
| variable expense | 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 |
| wealth | an abundance of money and other assets |
| emergency fund | an amount of money that can be easily accessed in case of a job layoff, illness or unexpected expense |
| charity | an organization that aids those in need |
| social responsibility | behaving with sensitivity to social, environmental and economic issues |
| data analysis | studying data with the goal of discovering new information that can help with making decisions |
| discretionary income | the money that remains after a person has paid all of his/her expenses |
| cash flow statement | a summary of the amount of money received and the amount paid for goods and services during a specific period |
| net worth | the difference between what is owned and what is owed |
| asset | an item of value that is owned such as cash, stocks, bonds and real estate |
| liability | a financial obligation that requires future payment. Includes unpaid bills, credit card charges, loans, taxes |
| liquidity | the ease with which an asset can be converted into cash without losing value |
| recordkeeping | the process of setting up an organized system for important documents |
| nature of financial planning | the development of a strategy to meet a person's financial needs over the course of his or her lifetime |
