Vocab
Financial Competence
ability to understand basic topics related to finance
Examples of transferable skills
communication, problem solving, goal setting
Expense
the cost of goods and services purchased
Earned Income
the income received from employment, including self-employment
Ways to benefit
Track Your Income and Expenses, Set Spending Limits, Prioritize Needs Over Wants
Ethics
moral principles or beliefs that direct a person's behavior
Examples of Positive work ethic
positive attitude, professionalism, honesty, cooperation
Fixed expense
a set amount that must be paid each budget period
Commisson
income paid as a percentage of sales made by a salesperson
What is a zero-based budget or envelope system?
This type of budget tracks expenses daily or weekly to stay on top of spending
Consumer
Somebody who purchases goods and services for personal use
What are the 4 proper elements of behavior that every employee should have when applying ethics in the workplace
Respect, Honor, Integrity, Customer Focus
Variable expense
a cost that changes both in the amount and time it must be paid
Money earned with little ongoing effort after the initial setup.
How are you benefiting
Better control over your finances, Helps you save more, Reduces stress, Avoids debt, Helps achieve financial goals
Financial Literacy
It is the knowledge and ability to understand and effectively manage personal finances.
Self management skills
the abilities and practices that allow individuals to effectively control their emotions, behaviors, and thoughts to achieve personal and professional goals.
Discretionary expense
an amount spent for an item that a person could do without
Calculated by subtracting adjustments from total income
What are assests
When you calculate your net worth, you subtract your liabilities from this
Personal financial planning
the process of setting financial goals and developing plans to reach them while meeting financial needs.
Differences between Transferable skills and Self management
Self management skills are the abilities that allow people to control their emotions, behaviors, and thoughts to achieve personal and professional goals. Transferable are abilities and knowledge applicable across different jobs and industries
Charitable contribution
a donation of money or other property.
Employee benefit
form of noncash compensation received in addition to a wage or salary also known as fringe benefit
What is the debt-to-income ratio
This financial ratio compares your total debt payments to your gross income, helping lenders assess your ability to repay loans.