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
