Vocabulary
A formal relationship where one person is paid for their labor by another person or organization.
What is a job?
Once you have a goal in mind, this is the first step to creating a financial plan.
What is creating a budget?
Scarcity is the idea that resources are this.
What is Limited?
Eating out at restaurants would be this type of expense.
What is a variable or flexible expense?
This describes a situation where expenses are greater than income.
What is negative cash flow.
A series of jobs, often over a working lifetime, where each job builds on the experience and skills learned in past jobs.
What is a career?
A budget lists two things: money coming in (income) and this.
What are expenses?
Your time, skills, energy, environment, relationships and attitude are all these.
What are resources?
This describes how much you must pay for something you are buying.
What is cost?
To have a positive cash flow, this must be greater than expenses.
What is income?
An achievement that will take time, effort and planning to accomplish.
What is a goal?
Expenses that change month to month are variable. Expenses that stay the same are this.
What are fixed expenses?
List three basic needs.
Answers may include food, water, air, shelter, community, safety or other needs.
To achieve a financial goal more quickly, you should do this to your spending.
What is reduce or limit?
Your cash flow is negative. Doing this might change that.
What is increasing income or reducing expenses?
The benefits you give up by choosing one option over a different option.
What is opportunity cost?
A short-term goal might take this long to achieve.
What are days / weeks?
If you work 20 miles away from where you live, you might need this.
Reliable transportation
An investment is a type of spending that will do this.
What is make money in the future?
Your cash flow is usually positive but is negative for this month. Your bills are due soon. This might save you.
What are savings or investments?
The movement of money into and out of your possession over a period of time.
What is cash flow?
Investments can help you save money for this type of goal.
What are long term goals?
You job requires you to have a phone, making it a need. This type of phone would be a want.
Answers may include newer models of smartphone.
An amount of money owed for services or goods already received.
What is a bill?
You just lost your job. Doing this can help you keep a positive cash flow.
What is increasing other income or cutting variable/ flexible expenses?