chapter 1.
The overall structure of values and goals that guides a person’s behavior and provides a sense of direction in life.
what is a value system
An overview of an individual’s current financial position and strategies to meet future financial aspirations.
what is financial plan
The development of a strategy to meet a person’s financial needs over the course of a lifetime.
what is nature of financial planning
A cost that changes both in the amount and time it must be paid.
What is variable expense
The income received from employment, including self-employment.
What is Earned income
The process of setting financial goals and developing plans to reach them while meeting financial needs.
what is personal financial planning
Necessities a person must have to survive
what is a Needs
A plan for the use of money over time based on goals, expenses, and expected income.
what is budget
An amount spent for an item that a person could do without.
What is discretionary expense
Payment for work that is usually calculated on an hourly, daily, or piecework basis.
what is wage
The moral principles or beliefs that direct a person’s behavior.
what is Ethics
Things that a person desires but can live without.
what is a Wants
A software program that formats data in columns and rows and can perform calculations.
what is a spreadsheet
An abundance of money and other assets
What is wealth
The amount paid for working time in a week that is beyond the standard 40-hour workweek.
what is overtime wage
A value or goal that is given more importance than other values and goals.
what is a priority
An individual who purchases goods and services for personal use.
What is a consumer
A person who possesses it does not judge other people as less important or competent.
what is Humility
An amount of money that can be easily accessed in case of a job layoff, illness, or unexpected expense.
what is a emergency fund
A wage based on a rate per unit of work completed.
what is Piecework
An established measure of quality, value, or quantity.
what is a standard
Principles and beliefs that a person considers important.
What is Values
A set amount that must be paid each budget period.
what is a fixed expense
An organization that aids those in need, such as the homeless or victims of natural disasters.
What is charity
A fixed payment for work and is expressed as an annual figure.
what is Salary