Level 1
a spending and saving plan based on your expected income and expenses.
Budget
occurs when a person accepts the terms of a offer.
Acceptance
a set of goals for spending, saving, and investing the money you receive.
Financial Plan
refers to the competence (legal ability) of the parties to enter a contract.
Capacity
something of value exchanged for something else of value.
Consideration
items of value that a person owns.
Assets
a legally enforceable agreement between two or more people.
Contract
a new offer that changes the original offer
Counteroffer
organizes data in columns and rows and can perform calculations using the data.
Spreadsheet
when the signature is verified by a notary public, who then applies a notary seal.
Notarized
an invitation to enter into a contract that is made with serious intent by one person to another person.
Offer
the difference - when you subtract liabilities from assets
Net Worth
When income exceeds expenses
Cash Surplus
a person who promises to pay the debt of another person.
Cosigner
organizes data for easy search and retrieval.
Database
the accumulation of assets
Wealth
costs that vary in amount and type, depending on the choices you make.
Variable Expense
the money you have left to spend or save after taxes and other deductions are taken.
Disposable Income
an unconditional written promise to pay a specified sum of money upon demand of the holder.
Negotiable (instrument)
requires that some contracts be in writing & signed to be legally binding. Every state has a set.
Statute of Frauds
money or debts owed to others
Liabilities
costs that do not change from month to month.
Fixed Expense
when estimated expenses are greater than estimated income.
Cash Deficit
also called a guarantee, is a statement assuring quality and performance of a product or service.
Warranty
net worth equation
Assets - Liabilities = Net Worth