Money management
planning how to get the most from your money
safe deposit box
a small, secure storage compartment that you can rent in a bank, usually for 100 dollars a year or less.
Personal financial statements
documents that provide information about you current financial position and present a summary of you income and spending.
Balance sheet
also called a net worth statement is a financial statement that lists the items of value that you own, the debts that you own, and your net worth
Net worth
The difference between the assets (money you have) and the debts that you owe.
Assets
Any items of value that you own, including cash, property, personal possessions, and investments
Liquid assets
Cash and items that can be quickly converted to cash
Real Estate
land that a person or family owns and anything that is on it, such as a house
Market value
the price at which you could sell the property
Liabilities
debts that you owe
Insolvency
the condition that occurs if your liabilities are greater than your assets
Cash flow
the money that actually goes into and out of your wallet and bank accounts
Income
The money that you receive
Take home pay
Or net pay is the amount of income left after taxes and other deductions are taken out of your gross pay
Discretionary income
the money left over after you have paid for the essentials (food, clothing, medication, shelter and transportation)
surplus
extra money that can be spent or saved
deficit
the situation that occurs if you spend more money tan you earn or receive
Budget
a plan for using your money in a way that best meets your wants and needs
Consumer Price Index
a measure of the changes in prices for commonly purchased goods and services in the US
Budget variance
Difference between the budgeted amount and the actual amount that you spend