| A | B |
|---|
| Trade Offs | The alternative someone gives up when making an economic choice. |
| Goals | Something that a person wants to have or to achieve, and is willing to work for. |
| Needs | Things that are required in order to live. |
| Disposable Income | The amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy. |
| Short-Term Goal | A goal that is planned to be reached within the year. |
| Balanced Budget | This would occur when current expenditures are equal to receipts. |
| Variable Expense | An expense that changes from month to month. |
| Deficit | A situation in which liabilities exceed assets, expenditures exceed income, imports exceed exports, or losses exceed profits. |
| Emergency Fund | An account that is used to set aside funds to be used in an emergency, such as the loss of a job, an illness or a major expense. The purpose of the fund is to improve financial security by creating a safety net of funds that can be used to meet emergency expenses as well as reduce the need to use high interest debt, such as credit cards, as a last resort. |
| Intermediary Goal | A goal that is planned to be reached within one to five years. |
| Long-Term Goal | A goal that is planned to be reached in more than five years. |
| Personal Income | Refers to salaries and wages as well as investment income and government payments to individuals. |
| Surplus | More than is needed, desired, or required. |
| Fixed Expense | Any type of set costs that recurs on a regular basis. Fixed costs can include insurance, vehicle payments, loan payments and mortgage payments. |
| Opportunity Costs | the most desirable alternative given up as the result of a decision. |
| Discretionary Income | The amount of an individual's income that is left for spending, investing or saving after taxes and personal necessities (such as food, shelter, and clothing) have been paid. Discretionary income includes money spent on luxury items, vacations and non-essential goods and services. |
| Income | Money that is received and is available to spend and/or save. |
| Spending Plan | A design for using one's money based on a their current income and expenses. |
| Budget | A list of planned expenses and revenues. |
| Wants | Those things which make our lives more comfortable but are not needed for survival. |
