Ch 1
The granting of a loan and the creation of debt; any form of deferred payment
What is CREDIT
Person or entity that charges borrower interest rates above the established legal rate
What is LOAN SHARK
Financial debts or obligations
An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
what is PAYCHECK to PAYCHECK
What a person earns after payroll taxes and other deductions are taken out; referred to as take home pay
What is NET INCOME
The amount by which the value of a persons assets exceeds or falls behind the value of their liabilities
What is NET WORTH
A plan of action that allows a person to meet not only their immediate needs but also their long-term goals
What is FINANCIAL PLAN
Anything that is owed by an individual , including money in the bank or investments
What a person earns after payroll taxes and other deductions are taken out; often referred to as take home pay
What is NET INCOME
Expense that remains the same from month to month
What is FIXED EXPENSE
The dollar value of a persons assets is greater that the dollar value of their liabilities
What is POSITIVE NET WORTH
A person or organization that uses a product or service
What is a CONSUMER
The costs of goods or services; money paid out
Money received for work, as a gift or through investments
What is INCOME
Expense that occurs at various times throughout the year and tends to be in large . lump sums
All the financial decisions an individual or family must make in order to earn. budget, save or give money over time
What is PERSONAL FINANCE
The additional cost a lender charges for borrowing their money
What is INTEREST
Money owed to another person or company
What is DEBT
Expense that varies in dollar amount from month to month, but you can expect to have every month
What is VARIABLE EXPENSE
A written plan for giving, saving, and spending
What is BUDGET
The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
The dollar amount of a persons liabilities is larger than the value of their assets
What s INTEREST
The amount you earn before taxes and other payroll deductions
What is GROSS INCOME
The name of Ramsey money app
What is EVERY DOLLAR APP