VOCAB CHAPTERS 16.1, 16.2 & 18.1

Money Management

The day-to-day financial activities associated with using limited income to satisfy our unlimited needs and wants.

Personal Assets

Items of value.

Net Worth

The difference between a person's assets and liabilities.

Cash Flow Statement

A financial statement that reports net wages and other income along with spending for a period, such as for a month.

Fixed Expenses

Costs that occur on a regular basis and are for the same amount each time.

Variable Expenses

Living costs that differ each time and may not be as easy to estimate.

Allowance

The amount of money you plan to use for a certain budget category.

Budget Variance

Any difference between actual spending and budgeted amounts.

Credit

The privilege of using someone else's money for a period of time.

Finance Charge

The total dollar cost of credit including interest and all other charges.

Down Payment

A payment of part of the purchase price that is made as part of a credit agreement.

Installment Loan

A loan in which you agree to make monthly payments in a specific amount over a period of time.

Promissory Notes

A written promise to repay based on a debtor's excellent credit history.

Collateral

Property that is offered as security for some loan agreements.

Cosigner

The party responsible for payment of a note if the borrower does not pay as promised.

Credit Rating

A person's reputation for paying bills on time.