vocab 3 Flashcards
Zero based budget
financial plan where every anticipated earning is assigned a role to be spent, saved, or invested somewhere, so there’s no left over money with no purpose
cost of living
The amount of money needed to sustain a certain level of living, including basic
expenses such as housing, food, taxes, and healthcare; often used when comparing
now expensive luis to live In one cy versus another
benefits
an advantage or something that helps you
fixed expense
cost that can be expected at regular intervals and that remains the same amount
insurance
a risk management tool that protects an individual from specific financial losses
under specific terms and premium payments, as described in a written policy
document.
cash flow
money that goes in and out of your wallet and account
income
money that is earned from work, investments, business
salary
a fixed amount of money paid to an employee for each pay period
personal finance
the principles and methods that individuals use to acquire and manage income and assets
unit price
the cost for one item or measurement that allows it to be easily compared to other products to evaluate which is a better deal
net pay
total earning after payroll taxes and other deductions
deficit
when ur expenses exceed your income
wants
nonessential purchases a person wants to feel happy, make life convenient, fit in with peers
expenses
products, services, or bills you are responsible for paying
variable expenses
costs that appear irregularly or that change in amount
budget
a plan of your expected income and how you will use it to meet your expected expenses over a period of time
investing
to put money to use by buying a part of something so , that you may have profitable returns
wage
amount of money paid to an employee at a specific rate per hour worked
deduction
any items subtracted from your paycheck, including state and federal income taxes, social security, health insurance or 401k
costs
price paid to get a good or service
freelancer
an independent contractor who provides a specific service for a certain period of time so after that service is fulfilled they no longer work with the company
scarcity
shortness of supplies
wealth
total value of money and other assets , minus debts
gross pay
total earning before deductions are taken
needs
purchases a person must have to live or succeed or bills that must be paid to remain in good standing
surplus
when your income exceeds your expenses and you have money left over
pay yourself first
to automatically save a specified amount from your paycheck before budgeting it into any other category
financial security
financial freedom from doubt, anxiety, and fear; confident backup of funding in the form of assets or savings which can be used in a time in need
financial literacy
the ability to use knowledge and skills to manage one’s financial resources effectively for a lifetime of financial security
emergency fund
money set aside specifically for an emergency
