Financial Plans
spending, saving and investing your money so you can enjoy the kind of life you want, along with financial security.
What is Personal financial planning
A general increase in the cost of goods and services. If you wait to buy an item you want, you risk the possibility that the price will increase.
What is Inflation Risk?
A method of planning to get the most from one's money.
What is money management?
The actual amount of money you earn or receive during a given period.
What is income?
An amount of money used to buy or do something.
What is an expense?
The things you want to accomplish.
What are goals
Your income may rise or fall. You could lose your job due to unexpected health problems, family issues or other reasons. You could also find a better job or get a raise.
What is Income Risk?
A plan for using your income in a way that best meets your wants and needs.
What is a budget?
The total amount of money you earned for a specific time.
What is gross pay?
Expenses that change and can be controlled more easilty than fixed expenses. They can include food, phone charges, entertainment and gifts.
What are variable expenses?
Buying a car, starting a business, going to college and owning a home.
What are examples of goals?
Some choices increase risk. Driving for eight hours on icy mountain roads instead of traveling by airplane may not be worth the money you would save.
What is Personal Risk?
Consumers, businesses and governments.
Who needs to budget?
Amounts that are taken out of your pay before you receive your paycheck.
What are deductions?
Expenses that occur regularly and are regularly paid. They include payments for rent, insurance and a car loan.
What are fixed expenses?
When making financial decision this is a good place to get information on social and economic conditions.
What is the Internet?
Interest rates rise and fall, which may affect the cost of borrowing or the profits you earn when you save or invest.
What is Interest Rate Risk?
Setting your goals, estimating your income, budgeting for unexpected expenses and savings, budget for fixed expenses, budget for variable expenses, record what you spend and review spending and saving patterns.
What are the steps in planning a budget?
Take home pay or gross pay minus deductions
What is net pay?
The extra money that can be spent or saved depending on a person's goals and values.
What is a surplus?
What you give up when you make one choice instead of another, also known as a tradeoff.
What is opportunity cost?
You may have to withdraw your savings or investments. Liquidity is the ability to convert your financial resources into cash easily without a loss in value.
What is Liquidity Risk?
Helps people set priorities for spending and saving and tracks their money.
What is a good budget?
Taxes that are applied to the worker's federal, state, and local income taxes as well as his or her contribution to social Security and Medicare.
What are withholdings?
What is a deficit?