Budget

Net Worth

100

Something that has positive economic value.

Asset

200

Your financial wealth at one point in time.

Net Worth

300

Something that you owe, something that has negative economic value

Liability

400

What is the formula for net worth?

Assets minus Liabilities = Net Worth

500

You own a house worth $350,000, but have a $400,000 mortgage on the house. 

Is your house an asset or liability?

Asset

Wants/Needs

100

All of the monthly expenses associated with the goods and services that keep your life stable.

Needs

200

Goods and services that are not essential to daily living, but are often things that make people happy or may make life seem a little easier or a little more special.

Wants

300

Want or Need?

Rent

Need

400

Want or Need?

$300 sneakers

Want

500

Want or Need?

Vacation

Want

Fixed Expense/Variable Expense/Discretionary Spending

100

Please identify the expense as either:

Fixed, Variable or Discretionary Spending

Season tickets to Great Adventure

Discretionary Spending

200

Please identify the expense as either:

Fixed, Variable or Discretionary Spending

Rent

Fixed Expense

300

Please identify the expense as either:

Fixed, Variable or Discretionary Spending

Car Loan Payment

Fixed Expense

400

Please identify the expense as either:

Fixed, Variable or Discretionary Spending

Electric Bill

Variable Expense

500

Please identify the expense as either:

Fixed, Variable or Discretionary Spending

Grocery Bill

Variable Expense

Budget

100

Expenses which are the same amount every month.

Fixed Expenses

200

True or False

Adding up all your assets is an accurate way of calculating your Net worth.

False

300

A financial Plan that compares your income to your expenses.

Budget

400

Expenses which fluctuate throughout the year.

Variable Expenses

500

When you save at least 10% from every paycheck.

Pay Yourself First

Miscellaneous

100

When your monthly income is greater than your monthly expenses.

Positive Cash Flow

200

Experts recommend saving at least what percentage of your income?

10%

300

When you spend money on something you want versus something you need

Discretionary Spending

400

When your monthly expenses are greater than your monthly income.

Negative Cash Flow

500

How do you maximize your net worth?

By maximizing your assets and minimizing your liabilities.