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14 Terms

1
Gross Pay
Income earned before payroll deductions
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2
Net Pay
Income earned after payroll deductions
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3
FICA
Medicare and Social Security
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4
Payroll deductions
Federal Income tax, State Income Tax, 401 K
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5
Variable Expense

expenses that can change month to month

  • Entertainment expenses

  • Medical Bills

  • Credit Card Expenses

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6
Fixed Expenses

Expenses that stay the same month to month

  • Automobile Loan

  • Student Loan

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7
Asset
  • Joe DiMaggio Rookie baseball card

  • Real Estate

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8
Liquid Asset
  • Checking Account

  • Cash

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9
Current Liability
  • you owe a friend $20

  • Medical Bill

  • Credit Card Balance

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10
Long Term Liability
  • Mortgage

  • Car Loan

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11
Insolvency
Occurs when liabilities are greater than assets
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12
Net worth
 Total Assets - Total Liabilities
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13
Net Cash Flow
 Inflows - Outflows
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14
Monthly Net Income
 Monthly Gross Income - Payroll deductions
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