Financial Literacy Unit 4: Personal Budget, Family Budget, Business Budget

Flashcards for vocabulary related to financial literacy, personal budget, family budget, and business budget.

Budget

An estimate of future revenue and spending that is often generated and analysed on a periodic basis.

Budget Surplus

When income surpasses expenses, indicating well-managed finances.

Budget Deficit

When expenses exceed income, potentially requiring borrowing.

Personal Budget

A document that keeps track of the money coming in from various sources, as well as the money going out to cover expenses for an individual.

Family Budget

The amount of money needed by a family to maintain a modest and satisfactory level of living.

Business Budget

A budget that represents expenses and income for a business. It also describes financial and operational goals.

Master Budget

Is a compendium of lower-level budgets created by functional departments of an organisation.

Operating Budget

Represents a company's anticipated revenue and expenses over a specific time period.

Cash Budget

Predicts the amount of money that enters and exits a business over a specific time period.

Financial Budget

Businesses establish this budget to determine how much cash they will require and when they will require it to accomplish short- and long-term objectives.

Labor Budget

Helps determine the workforce needed to fulfill goals, letting you budget for all of those employees.

Fixed Budget

A budget that remains constant over time, regardless of changes during the budgeting period.

Variable Budget

Quantities in a budget that fluctuate depending on sales, output, and other external economic factors.

Estimated Revenue

The amount of money expected to be made through the sale of goods and services.

Fixed Cost

A cost that does not fluctuate in the short term, independent of a company's sales volume or other activity levels.

Variable Costs

Expenses that vary according to the amount of goods or services produced by a company.

Capital Expenditure

Monies used by a corporation to purchase, improve, or maintain long-term assets.

Cash Flow

The money that enters and exits the company.

Profit

The final budget component derived by deducting anticipated costs from revenue.

Financial Planning

A long-term strategy for your financial future that considers every facet of your financial condition and how each effects your ability to achieve your goals and objectives.