Financial Literacy - PreAssess

Assets:

• Anything of material value owned by an individual or company. This may include your house, car, furniture — anything that’s worth money.
• A financial goal that will require less than six months to achieve.
• Your financial wealth at one point in time. The formula to calculate net worth is simple: Net worth = assets – liabilities

Budget:

• A plan for future spending and saving, weighing estimated income against estimated expenses.
• A professional who provides financial services and advice to individuals or businesses.
• The total amount of money an individual has earned before voluntary deductions, such as 401(k) contributions, and involuntary deductions, such as taxes are taken out.

Cost-benefit analysis:

• Anything of material value owned by an individual or company. This may include your house, car, furniture — anything that’s worth money.
• Analyzing whether the cost of an item is more than, equal to, or less than the benefit that comes from its purchase.
• The money an individual spends regularly for items or services.

Expenses:

• Comparing the cost of two or more goods or services in an effort to find the best value.
• The money an individual spends regularly for items or services.
• The concept that sometimes it is worth taking on certain types of debt in order to generate income in the long run. Some common examples of good or "useful" debt include college education loans and real estate.

Federal taxable wages:

• Debt taken on for items that a consumer cannot afford and that does not generate opportunities for future income.
• The sum of all earnings by an employee that are eligible for a specific taxation.
• The benefit or value that one must give up in order to buy or achieve something else.

Fixed expenses:

• Personal expenses that are the same each month.
• Fees paid in exchange for instruction from a school (e.g., primary, high school, college, vocational).
• Spur-of-the-moment, unplanned decision to buy, made just before a purchase. Income: Payment received for goods or services, including employment.

Good Debt

• The concept that sometimes it is worth taking on certain types of debt in order to generate income in the long run. Some common examples of good or "useful" debt include college education loans and real estate.
• Personal expenses that are the same each month.
• Personal expenses that are the same each month.

Gross income:

• The total amount of money an individual has earned before voluntary deductions, such as 401(k) contributions, and involuntary deductions, such as taxes are taken out.
• Spur-of-the-moment, unplanned decision to buy, made just before a purchase. Income: Payment received for goods or services, including employment.
• Fees paid in exchange for instruction from a school (e.g., primary, high school, college, vocational).

Impulse spending:

• Spur-of-the-moment, unplanned decision to buy, made just before a purchase. Income: Payment received for goods or services, including employment.
• Tax levied by a government directly on personal income. Income volatility: The variance of income, meaning the amount of divergence from the average.
• Expenses that change in price and frequency each month.

Income tax:

• Everything that you owe, which may include your mortgage, credit card balance, interest, student loans, and loans from family and friends.
• The amount an employee earns once taxes and other items are deducted from gross pay.
• Tax levied by a government directly on personal income. Income volatility: The variance of income, meaning the amount of divergence from the average.