lesson 1.1
money owed to another person or company
what is Debt
what is a budget
is a plan for how you spend your money
first part of a Budget
what is income
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
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
what is a Zero-Based Budget
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
How does having a monthly budget help you achieve your money goals?
it can help make sure you don't run out of money
sec part of budget
what is Giving
anything that is owned by an individual, including money in the bank or investments
what is Asset
the amount you earn before taxes and other payroll deductions
what is a Gross Income
a person or organization that uses a product or service
what is Consumer
The Purpose of a Budget
so you’re in control of your money, and you don’t have to wonder where it all went.
what is the 3rd part of a budget
what is saving
financial debts or obligations
what is Liability
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
what is Net Income
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
what is personal finance
the granting of a loan and the creation of debt; any form of deferred payment
what is Credit
what is the last part of a budget
what is Spending
the dollar value of a person’s assets is greater than the dollar value of their liabilities
what is Positive Net Worth
The simple—but powerful—_______is the secret to making all of your money goals a reality!
what is zero-based budget
Because personal finance is only _______ and 80% behavior.
what is 20% head knowledge
person or entity that charges borrowers interest rates above an established legal rate
what is Loan Shark
the additional cost a lender charges for borrowing their money
what is Interest
the dollar value of a person’s liabilities is larger than the value of their assets
what is Negative Net Worth
A zero-based budget is when your income minus your giving, saving, and spending equals
what is zero