Consumer & Financial Lit Chapter 3

Question 0

Cash flow statement-

Answer 0

A summary that shows total income and spending for a given period of time.

Question 1

Budget-

Answer 1

A written cash flow plan.

Question 2

Carbon check-

Answer 2

A copy of each check you write.

Question 3

Envelope system-

Answer 3

Serious of envelopes that are divided into categories [ food,entertainment,gas,ect. ] and are used to store cash for planned monthly payments.

Question 4

Impulse purchase-

Answer 4

An item that is bought without previous planning or consideration of long-term effects.

Question 5

Overdraft-

Answer 5

Overdraft occurs when money is withdrawn from a bank account and the available balance goes to zero.

Question 6

Reconcile-

Answer 6

To match your bank statement with your check book.

Question 7

Zero-Based Budget-

Answer 7

Cash flow plan that assigns an expense to every dollar of your income minus the total expenses equals zero.