Money Management

TIME VALUE OF MONEY

• is the amount of money a person has to spend after needs are met.

• says that money received today is worth more than money received in the future.

• is a convenient way to pay bills if you do not have a checking account.

• a record for keeping track of checks written and deposits made.

INFLATION

• sets the price for a product based on existing prices in the market place.

• occurs when a person’s personal information is used without permission to commit fraud or theft.

• is a signature or instructions written on the back of a check authorizing a bank to cash or deposit the check.

• is an overall increase in general price levels.

OPPORTUNITY COST

• is what you give up when you make a decision to buy an item.

• is the amount of money a person has to spend after needs are met.

• describes how you will pay for achieving your personal goals.

• is money deposited for a fixed amount of time at a fixed interest rate.

NET WORTH

• says that money received today is worth more than money received in the future.

• is the amount of money a person has to spend after needs are met.

• is the value of all assets, minus the total of all liabilities.

• is the amount of money a person has to spend after needs are met.

FIXED EXPENSES

• are expenses that do not change each month.

• are expenses that can go up and down each month.

• are differences between planned and actual income or expenses.

• describe how you will pay for achieving your personal goals.

ASSETS

• are items of value that you own which may be appreciating or depreciating in value.

• allows you quick and easy access to your money without penalties.

• is interest earned on both principal and previous interest earnings.

• are things we desire to buy.

VARIABLE EXPENSES

• are expenses that do not change each month.

• are expenses that can go up and down each month.

• is money added to a checking or savings account.

• are special checks that can be ordered from banks or other retailers of personal checks. They have the advantage of leaving you with an exact and immediate copy of every check you write.

WANTS

• are expenses that can go up and down each month.

• describe how you will pay for achieving your personal goals.

• are things you want to achieve.

• are things we desire to buy and go beyond filling survival needs and basic comforts.

AUTOMATIC DEPOSIT

• allows you quick and easy access to your money without penalties.

• is money deposited for a fixed amount of time at a fixed interest rate.

• happens when money is electronically added to your checking account.

• is a written order to a bank to pay the stated amount to the person or business named from a certain account.

DEBIT CARD

• is a convenient way to pay bills if you do not have a checking account.

• is a check issued by a bank against its own funds.

• is a record for keeping track of checks written and deposits made.

• is a bank card that allows the account holder to make purchases and to withdraw cash from an account at an ATM.