Lesson 3 - fina 200 budgeting

Bonds

Long-term debt securities

Budget

A cash flow statement that is based on forecasted cash flows (income and expenses) for a future time period.

Current liabilities

Personal debts that will be paid in the near future (within a year).

Disposable (after-tax) income

Your income minus applicable income taxes and other payroll deductions

Household assets

Items normally owned by a household

Liquid assets

Financial assets that can be easily converted into cash without a loss in value.

Long-term liabilities

Debt that will be paid over a period longer than one year.

Mutual funds

Investment companies that sell shares to individuals and invest the proceeds in an overall portfolio of investment instruments such as bonds or stocks.

Personal balance sheet

A summary of your assets (what you own)

Personal cash flow statement

A financial statement that measures a person's income and expenses.

Real estate

Principal residence

Rental property

Housing or commercial property that is rented out to others.

Stocks

Certificates representing partial ownership of a firm.