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Budget
an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis
Balance Sheet
Reports Assets & Liabilities, determining your Net Worth and snapshots your financial standings at that specific moment in time
Net Worth
the amount of money you receive after taxes and other deductions.
Impulse Purchasing
the act of buying something that you had not planned to buy, because you suddenly want it when you see it.
Disposable Income
money LEFT AFTER TAXES that goes towards NEEDS
Discretionary Income
money left after paying expenses and needs – used for wants, luxury items, etc
Reconclie
make (one account) consistent with another, especially by allowing for transactions begun but not yet completed.
Zero-Based Budget
a method of budgeting in which all expenses must be justified for each new period.
Fixed Expense
costs that typically remain the same in price and frequency.
Variable Expense
costs that can change regularly.
Assets
Items you OWN of value
Liabilities
Amounts you OWE to others
What is a financial plan?
a document that details a person's current financial circumstances and their short- and long-term monetary goals.
What is step one for the decision making process?
Goal Recognition
What is step two for the decision making process?
List two choices that interest you
What is step three for the decision making process?
List a pro and con to your choice(s)
What is step four for the decision making process?
Make a decision
What is step five for the decision making process?
Evaluate your decision
What is step one for the budgeting process?
Save for emergencies
What is step two for the budgeting process?
Pay for expenses (pay for important ones first)
What is step three for the budgeting process?
Spend what’s left (discretionary income)
What should you always do in the budgeting process?
Pay Yourself First!
What is the equation to calculate net worth?
Assets - Liabilities = Net worth
How often should you revisit your budget?
Periodically
What is an earned income?
all the taxable income and wages you get from working for someone else, yourself or from a business or farm you own.
What is consumer purchases?
Items used in daily life
Leasing
rent something forever
Money Management
Day to day financial activities associated with using limited income to satisfy unlimited wants
What is the result of good money management?
Financial peace and happiness
What is the result of bad money management?
Serious credit problems & debt, Stress, Health problems, Marital problems, College dropouts, Suicide
Surplus
Money that is left over
Deficit
Overspent money
What is two ways you can adjust your budget?
Increase your income, or decrease your expenses
Note 
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