Personal Financial Management - Chapter 7 Flashcards
ATM card
Automated teller card which allows you to make transactions in ATMs
Active
Money - it’s always moving and can be utilized in many ways
Budget (2)
Plan for making and spending money
Another name for cash flow plan
Carbon checks
Checks that have a second copy behind them made of special paper which makes a copy of each check as you write them
Currency
Money
Debit card
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
Discipline
Training to improve strength or self control
Envelope system (5)
A control system where an individual places the actual budgeted amount of cash into the specific envelope labeled for the expense
Breakdown of savings form
$2,000 in savings, then break it down
Consumer equity = what you own - what you owe
Can have negative equity
Hoarding
Reserving more than necessary
Impulse purchase
To buy an item without thinking about it
Persistent (2)
Not giving up
Continuing on
Pro-active
Controlling a situation by causing something to happen rather than waiting to respond to it after it happens - takes strong initiative
Procrastinate (2)
To delay
Put off until later
Reconcile (3)
To bring back into agreement
Process used to determine if the balance in your checking registry makes the balance reported on the bank statement
Reconcile your bank statement within 72 hours of reconciling it
Zero-based budget
Cash flow plan that assigns an expense to every dollar of one’s income, where in the total income minus the total expenses = zero