Budgets 7.13(C) Vocabulary

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Asset

7.13(C)

Back

Something that a person or business owns that has or could have value

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Financial Asset

7.13(C)

Back

A non-physical asset that derives its value from a contractual claim or ownership right

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Liability

7.13(C)

Back

A financial obligation or debt that an individual or organization owes to another party

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Net Worth

7.13(C)

Back

The value of an individual's assets minus their liabilities

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Net Worth Statement

7.13(C)

Back

A list that shows how much money you actually have left over after you subtract all the things you owe (called liabilities) from all the things you own (called assets)

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Retirement

7.13(C)

Back

A financial arrangement designed to replace employment income after the employee retires

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Budget

7.13(C)

Back

A plan that outlines how much money you earn (income) and how much you plan to spend (expenses) over a specific period of time

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Expense

7.13(C)

Back

Money that is spent on items or services, and is subtracted from available funds

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Fixed Expense

7.13(C)

Back

A cost that stays the same every month

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Income

7.13(C)

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The difference between the amount of money earned and the amount spent, or the excess of revenue over expenses