Personal Finance Vocabulary

Front

budget

Back

plan for how to manage your money

Front

What is personal finance?

Back

the money decisions a person or family makes including earning, budgeting, saving, spending, and planning for the future

Front

credit

Back

the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future (borrowing)

Front

spending

Back

using money to purchase goods and services

Front

saving

Back

setting aside income for a period of time so that it can be used later

Front

debt

Back

something, typically money, that is owed or due

Front

liquid income

Back

money that is available quickly such as cash

Front

mortgage

Back

an agreement between you and a lender that allows you to borrow money to purchase a home

Front

fixed expense

Back

expenses which stay the same from month to month, such as housing and car payment

Front

variable expense

Back

an expense that changes from month to month, such as food or electricity