Budget/Spending Flashcards
Which category do each of these go in?
Car payment, value, and loan/balance
Payment: Fixed Expense
Value: Asset
Loan: Liability
Saving and checking accounts, mutual funds, furniture and Wardrobe/Jewelry fall into…?
Assets
Asset definition
Item of value that you own
Liabilities definition
Debts, money owed to others
Net worth definition
how do you solve for it?
How much your worth
Asset-Liability=net worth
Money management helps you to…?
Plan his to get the most from your money
A good budget…?
- Is realistic
- Ongoing
- Flexible
- Clear and easy to use
Balance sheet
A financial document that compares your total assets to your total liabilities
Gross income
Money you receive before taxes and other payroll deductions
Net income
The amount if money you receive after taxed and other payroll deductions
Financial planning
An ongoing process that sues your financial goals to develop a process and plan for reaching them
Steps for creating a budget
Estimate income
Estimate expenses
Plan for savings
Adjust the budget
Deduction
Money taken out of your paycheck
2nd and 3rd largest part of the budget
Transportation and food
Cost benefit analysis
Analyzing the pro’s and cons of a financial decision
