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Insolvency
The inability to pay debts when they are due
Income
Cash flow; The money you receive
Budget
A plan for spending and investing your money to meet your wants and needs
Encounter
To experience unexpectedly
Liabilities
The debts you owe
Deficit
The financial situation that occurs when you spend more money than you receive
Discretionary Income
Money you have left after paying for your essentials
Market Value
The price at which property would sell
Cash Flow
The movement of cash in and out of your wallet and bank accounts
Surplus
Extra money that you can spend or save
Budget Variance
The difference between the budgeted amount and the actual amount spent
Take-home Pay
The amount of income left after deductions (taxes) are subtracted from your gross pay
Alternative
Option
Trade Off
An opportunity cost
Home files is the best place to keep?
Cancelled Checks
Your net worth is a difference between?
Assets and Liabilities
Cars fall into this category of possessions
Personal Possessions
An example of cash outflow?
Credit card payment
Net Pay
The amount of income after taxes and other deductions are taken out of your paycheck
An example of variable expense is?
Medical Expenses
The key to establishing a sound financial future is to?
Increase your savings
Balance Sheet
A financial statement that lists items of value that you own, debts that you owe, and your net worth
What are the characteristics of a successful budget?
Carefully planned
Practical
Flexible
Easily accessed
Safe Deposit Box
A small secure storage compartment that can be rented in a bank
Discretionary Income
The money left over after essentials are paid for
Liquid Assets
Cash and items that can be quickly converted to cash
Net Worth
The difference between the amount you own and the debt you owe
Assets - Liabilities = Net Worth
Personal Financial Statements
Documents that provide information about your current financial position; Present a summary of your income and spending
Money Management
The method of planning how to get the most from your money
Note 
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