Term
|
Definition
| A set of federal laws that allow you to either restructure your debts or remove certain debts |
|
|
Term
|
Definition
| A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities. |
|
|
Term
|
Definition
| Day to day financial activities necessary to manage current personal economic resources while working toward long-term financial security. |
|
|
Term
|
Definition
| A private storage area at a financial institution with maximum security for valuables. |
|
|
Term
|
Definition
| A financial statement that reports what an individual or a family owns or owes; also called a net worth statement. |
|
|
Term
|
Definition
| Cash and other property with a monetary value |
|
|
Term
|
Definition
| Cash and items of value that can easily be converted to cash. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Debts that must be paid within a short time, usually less than a year. |
|
|
Term
|
Definition
| Debts that are not required to be paid in full until more than a year from now. |
|
|
Term
|
Definition
| The difference between total assets and total liabilities. |
|
|
Term
|
Definition
| The inability to pay debts when they are due because liabilities far exceed the value of assets. |
|
|
Term
|
Definition
| The actual inflow and outflow of cash during a given time period. |
|
|
Term
|
Definition
| A financial statement that summarizes cash receipts and payments for a given time period. |
|
|
Term
|
Definition
| Inflows of cash to an individual or household. |
|
|
Term
|
Definition
| Earnings after deductions for taxes and other items; also called disposable income. |
|
|
Term
|
Definition
| Money left over after paying for housing, food, and other necessities. |
|
|
Term
|
Definition
| A specific plan for spending income. |
|
|
Term
|
Definition
| The difference between the amount budgeted and the actual amount received or spent. |
|
|
Term
|
Definition
| The amount by which actual spending exceeds planned spending. |
|
|
Term
|
Definition
| The amount by which actual spending is less than planned spending. |
|
|
Term
|
Definition
| A tax imposed on specific goods and services, such as gasoline, cigarettes, alcoholic beverages, tires and air travel. |
|
|
Term
|
Definition
| A tax imposed on the value of a person’s property at the time or his or her death. |
|
|
Term
|
Definition
| A tax levied on the value of property bequeathed by a deceased person. |
|
|
Term
|
Definition
| The net amount of income, after allowable deductions, on which income is computed. |
|
|
Term
|
Definition
| Money received for personal effort, such as wages, salary, commission, fees, tips or bonuses. |
|
|
Term
|
Definition
| Money received in the form of dividends, interest, or rent from investments. Also called portfolio income. |
|
|
Term
|
Definition
| Income resulting from business activities in which you do not actively participate. |
|
|
Term
|
Definition
| An amount not included in gross income. |
|
|
Term
|
Definition
| Income that is not subject to tax. |
|
|
Term
|
Definition
| Income that will be taxed at a later date. |
|
|
Term
| Adjusted Gross Income (AGI) |
|
Definition
| Gross income reduced by certain adjustments, such as contributions to an individual retirement account (IRA) and alimony payments. |
|
|
Term
|
Definition
| An investment that provides immediate tax benefits and a reasonable expectation of a future financial return. |
|
|
Term
|
Definition
| An amount subtracted from adjusted gross income to arrive at a taxable income. |
|
|
Term
|
Definition
| A set amount on which no taxes are paid. |
|
|
Term
|
Definition
| Expenses that can be deducted from adjusted gross income, such as medical expenses, real estate property taxes, home mortgage interest, charitable contributions, casualty losses, and certain work-related expenses. |
|
|
Term
|
Definition
| A deduction from adjusted gross income for yourself, your spouse, and qualified dependents. |
|
|
Term
|
Definition
| The rate used to calculate tax on the last (and next) dollar of taxable income. |
|
|
Term
|
Definition
| Total tax due divided by taxable income. |
|
|
Term
|
Definition
| An amount subtracted directly from the amount of taxes owed. |
|
|
Term
|
Definition
| A detailed examination of your tax return by the Internal Revenue Service. |
|
|
Term
|
Definition
| The use of legitimate methods to reduce one’s taxes. |
|
|
Term
|
Definition
| The use of illegal actions to reduce one’s taxes. |
|
|
Term
|
Definition
| Profits from the sale of a capital asset such as stocks, bonds or real estate. |
|
|
Term
| Personal Financial Planning |
|
Definition
| The process of managing your money to achieve personal economic satisfaction. |
|
|
Term
|
Definition
| What a person gives up by making a choice. |
|
|
Term
|
Definition
| The stages in the family situation and financial needs of an adult. |
|
|
Term
|
Definition
| ideas and principles that a person considers correct, desirable and important. |
|
|
Term
|
Definition
| The study of how wealth is created and distributed. |
|
|
Term
|
Definition
| A rise in the general level of prices. |
|
|
Term
|
Definition
| Increases in an amount of money as a result of interest earned. |
|
|
Term
|
Definition
| The amount to which current savings will increase based on a certain interest rate and a certain time period; also referred to as compounding. |
|
|
Term
|
Definition
| The current value for a future amount based on a certain interest rate and a certain time period, also referred to as discounting. |
|
|
Term
|
Definition
| The ability to readily convert financial resources into cash without a loss in value. |
|
|
