Financial Literacy (Budgeting)

spending

refers to the act of using money to purchase goods and services. It is essential to track your spending to understand where your money goes and to help you make informed financial decisions.

Financial Stability

is the condition where an individual or household has enough income to meet their financial obligations without excessive stress. It often involves having a steady income, manageable debt levels, and savings for emergencies

Short-Term Financial Goal

is an objective you aim to achieve within a year. Examples include saving for a vacation, paying off a credit card, or building an emergency fund

Long-Term Financial Goal

are objectives that take more than a year to achieve. These could include saving for retirement, buying a home, or funding your child's education

Income

is the money received from various sources, such as jobs, investments, or business activities. It can be classified as earned income (from work) or unearned income (from investments).

Budget

is a financial plan that outlines expected income and expenses over a specific period, usually a month. It helps you manage your money and ensure you do not overspend.

Investing

involves putting your money into assets like stocks, bonds, or real estate with the expectation of generating a return or profit over time. It is a way to grow your wealth.

Expense

is any cost incurred in the process of purchasing goods or services. Expenses can be classified into different categories, such as fixed, variable, and discretionary expenses.

Personal Budget

is a detailed plan that tracks your income and expenses, helping you manage your finances effectively. It allows you to allocate funds to different areas such as savings, necessities, and discretionary spending.

S.M.A.R.T goals

are specific, measurable, achievable, relevant, and time-bound objectives. This framework helps you set clear financial goals, making it easier to track your progress.

Unplanned Income Changes/Emergency Funds

refer to unexpected increases or decreases in your income. Emergency funds are savings set aside to cover unexpected expenses or income loss, providing a financial safety net.

Fixed expense

are costs that remain constant each month, such as rent or mortgage payments, insurance premiums, and loan payments. These expenses are predictable and should be included in your budget.

Variable expense

fluctuate from month to month, such as groceries, utility bills, and entertainment costs. It’s important to monitor these expenses as they can impact your overall financial health.

Discretionary (Non-Essential) Expense

are non-essential costs that can be adjusted or eliminated if necessary, such as dining out, subscriptions, or luxury items. Managing these expenses can help you save money.

Irregular income

refers to income that does not occur regularly, such as freelance work, bonuses, or commission payments. It is important to plan for irregular income in your budget to manage fluctuations effectively.