Chapter 16 Flashcards
Items of value such as jewelry automobiles and investments
Personal assets
The difference between a person’s assets and liabilities
Net worth
Reports not wages another income along with spending for a period
Cash flow statement
The money you have available to spend as a result of working or some other income
Cash inflows
The amount of the paycheck after taxes and other payroll deductions
Take-home pay
Costs that occur on a regular basis and are for the same amount each time
Fixed expenses
Involve living costs that differ each time and may not be as easy to estimate
Variable expenses
The amount of money you plan to use for certain budget category
Allowance
Actual spending compared with the budgeted amounts
Budget variance
A report that summarizes your current financial condition, acknowledges your financial needs, and such a direction for your future financial activities
Financial plan
The most popular retirement income plan, which people can annually invest earnings up to a certain amount
Individual retirement account (IRA)
Means that the investment earnings on this retirement plan will be taxed later after retirement
Tax deferred
And amount of money and insurance company pays to a person who has previously deposited money with the company
Annuity
Involves the accumulation in management of property during one’s lifetime in the distribution of one’s property at death
Estate planning
Refers to the day-to-day financial activities associated with using limited income to satisfy your unlimited needs and wants
Money management
