Personal Finance vocab

Vocabulary flashcards covering fundamental personal finance and budgeting terms from the lecture notes.

Budget

A written plan for giving, saving & spending.

Income

Money recieved for work, as a gift or through investments.💼

Net Income

What a person earns after payroll taxes & other.

Gross Income

The amount you earn before taxes & other payroll deductions.

Fixed Expense

Expense that remains the same from month to month.

Variable Expense

Expense that varies in dollar amount from month to month, but that you can expect to have every month.📊😐

Intermittent Expense

Expense that happens at various times throughout the year that usually comes in big, lump sums

Asset

Anything that is owned by an individual, including money in the bank or investments.

Opportunity Cost

The financial opportunity that is lost when you choose to do something else w/ your money.

Balanced Budget

Budget in wich revenues are equal to spending.

Budget Surplus

A situation in wich the government takes in more than it spends.

Budget Deficit

A situation in wich the government spends MORE👆 THAN IT TAKES IN👇

Tax

A required payment to a local, state, or national government.

Individual IncomeTax

A tax on a persons earnings

FICA

Taxes that fund social security and medicare

Withholding

The portion of an employee's pay held back to other taxes and other deductions

Supply

The amounts of goods available

Demand

The desire to own something and the ability to pay for it

Equilirium

The point at wich quiantity demanded and quantity supplied are equal.