financial planning vocab

Assets

money and items of value that you own

budget

A plan for making and spending money

discretionary income

money that remains after paying for taxes and necessities

expenses

the cost required for something; the money spent on something.

Financial Goals

plans for how you will pay for your personal goals

financial plan

a plan listing personal and financial goals along with steps and a timeline for reaching them

financial resources

money or other items of value that are used to acquire goods and services

fixed expenses

costs that don't change each month

identity theft

A crime that involves someone pretending to be another person

liability

debt you must pay

net worth

total assets minus total liabilities

opportunity cost

the value of something that you gave up

personal goals

things you want to achieve in your life

Phising

an identity theft tool that appears in the form of an E-mail or pop-up message; usually looks like it's from your bank.

Trade-off

Giving up one thing for another

variable expenses

expenses that change from month to month

Variances

the differences between planned amounts and actual amounts

favorable variance

when the actual amount is less than the planned amount

unfavorable variance

when the actual amount is more than the planned amount

Wants

things that add comfort and pleasure to your life