1.1
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
Personal Finance
A great financial action plan for you
Five Foundations
a written plan for giving, saving, and spending
budget
a record that summarizes all of the income and outgo (spending) over a certain time period
Cash-Flow Statement
earnings based on a percentage of the sales made
Commission
an expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
Paycheck to Paycheck
What do you do first for five foundations
save $500 emergency fund
expense for things you don’t need
Discretionary (Nonessential) Expense
The average household spends about .... on groceries and ..... on dining out each month.
$370, $290
income that comes in at different amounts or at different times, or both
Irregular Income
the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
Financial Literacy
What do you do second in the five foundations
Get out of debt and stay out of debt
expense that remains the same from month to month
Fixed Expense
Once cash is gone....
no more spending
e average American household spends more than.... of their annual income.
90%
a person or organization that uses a product or service
Consumer
a cash-flow plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero
Zero-Based Budget
expense that varies in dollar amount from month to month but that you can expect to have every month
Variable Expense
If you planned to spend $100 on food this month but you’ve already spent ....
$120
....of students who took this course talked to their family about money or finances this month.
65%
Total debt owned by U.S. consumers, credit cards
$890 billion
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net Income
expense that occurs at various times throughout the year and tends to be in large, lump sums
Intermittent Expense
Don’t spend money on things......at the expense of things that do.
that don't matter
More than ..... Americans are self-employed and many others work on straight commission. All of them deal with an irregular income that makes budgeting all the more important
15 million