Glencoe Business and Personal Finance Chapter 12 – Flashcards
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money management
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day-to-day financial activites necessary to get the most from one's money.
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safe-deposit box
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a small, secure storage compartment that can be rented in a bank.
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personal financial statement
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a statement that gives information about current financial position and presents a summary of income and spending.
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personal balance sheet
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a financial statement that shows what you own and debts that you owe.
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net worth
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the difference between the amount you own and debts that you owe.
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assets
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owned items of value such as cash, real estate, personal possession, and invenstments.
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wealth
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property that has a money value or an exchangeable value.
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liquid assets
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cash and items that can be quickly converted to cash.
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real estate
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land and any strucutures that are on it, such as a house or other building.
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market value
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the price at which property would sell.
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liabilities
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debts that you owe.
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insolvency
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the inability to pay debts when they are due.
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cash flow
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the movement of cash in and out of wallets and bank accounts.
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income
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cash inflow, including paychecks, allowances, and interest earned.
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take-home pay
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the amount of income left after taxes and other deductions are subtracted from gross pay.
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discretionary income
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the money left over after paying for essentials such as rent, utilities, clothing, transportation, and medications.
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surplus
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extra money that you can save or spend.
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deficit
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a financial situation that occurs when more money is spent than is received.
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budget
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a plan for spending and investing money.
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budget variance
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the difference between the budgeted amount and the actual amount spent.
