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Definition
| fundamental beliefs about what is important, desirable, and worthwhile |
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Term
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Definition
| specific objectives addressed by planning and managing finances |
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Definition
| pre-established action plans implemented in specific situations |
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Term
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Definition
| snapshots that describe an individual's or family's current financial condition |
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Term
| balance sheet/net worth statement |
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Definition
| snapshot of assets, liabilities, and net worth on a particular date; "Where are you financially right now?" |
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Term
| cash-flow statement/income and expense statement |
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Definition
| summary of all income and expense transactions over a specific time period; "Where did your money go?" |
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Definition
| everything you own that has monetary value |
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Definition
| what's left when you subtract liabilities from assets |
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| monetary assets/liquid assets/cash equivalents |
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Definition
| assets that can be used as cash; eg. cash on hand or in bank, tax refunds due, money owed to you by others |
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Term
| tangible/use/lifestyle assets |
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Definition
| personal property used to maintain your everyday lifestyle; eg. vehicles, houses, furniture |
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Term
| investment/capital assets |
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Definition
| tangible and intangible items acquired for their monetary benefits; eg. stocks, bonds, IRAs |
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Term
| short-term (current) liability |
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Definition
| obligation paid off within one year; eg. personal loans owed to other people, unpaid taxes, past-due rent, utility bills, credit card balances |
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Term
| long-term (noncurrent) liability |
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Definition
| debt that comes due in more than one year; eg. vehicle loans, real estate mortgages, education loans |
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Term
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Definition
| when a person owed more than he/she owns and the person has a negative net worth |
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Term
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Definition
| total expenditures made in a specified time such as reported on a cash-flow statement |
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Term
| surplus/net gain/net income |
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Definition
| when total income exceeds total expenses such as reported on a cash-flow statement |
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Term
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Definition
| only transactions involving actual cash received or cash spend are recorded |
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Term
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Definition
| expenses that recur at fixed intervals; eg. housing rent, insurance, internet service, taxes |
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Term
| variable/flexible expenses |
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Definition
| expenses over which you have substantial control; eg. meals, utilites, transportation, clothing/accessories |
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Term
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Definition
| calculations designed to simplify evaluation of financial strength and progress |
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Term
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Definition
| documents that evidence financial transactions |
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Term
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Definition
| document used to record both planned and actual income and expenditures over a period of time |
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Term
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Definition
| goals to achieve more than 5 years in the future |
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Term
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Definition
| goals that can be achieved within 1 to 5 years |
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Term
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Definition
| goals that can be achieved in less than 1 year |
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Term
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Definition
| projected dollar amounts to receive or spend in a budgeting period |
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Term
| take-home pay/disposable income |
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Definition
| pay received after employer withholdings for such things as taxes, insurance, and union dues, and it is available for budgeting for spending, saving, investing, and donating |
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Term
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Definition
| money left over after necessities such as housing and food are paid for |
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Term
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Definition
| budget estimates for monthly income and expenses |
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Term
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Definition
| variable budgeting tool that places funds in savings to cover emergency or higher-than-usual expenses |
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Term
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Definition
| when budget estimates differ from actual expenditures |
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Term
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Definition
| detailed listing of planned expenses within a single budgeting classification |
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Definition
| placing exact amounts into envelopes for each budgetary purpose |
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Term
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Definition
| difference between amount budgeted and actual amount spent or received |
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Term
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Definition
| recording sources and amounts of dollars earned and spent |
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Term
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Definition
| amount remaining after all budget classification deficits are subtracted from those with surpluses |
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