Personal Finance Vocabulary

budget

• a person's knowledge and work skills

• plan for how to manage your money

• money that you earn

• cost of borrowed money, usually expressed as a percentage

personal finance

• a person's knowledge and work skills

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

• money that you earn

• cost of borrowed money, usually expressed as a percentage

credit

• a person's knowledge and work skills

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

• 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)

• cost of borrowed money, usually expressed as a percentage

spending

• using money to purchase goods and services

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

• 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)

• cost of borrowed money, usually expressed as a percentage

saving

• using money to purchase goods and services

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

• 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)

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

debt

• using money to purchase goods and services

• something, typically money, that is owed or due

• 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)

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

liquid income

• using money to purchase goods and services

• something, typically money, that is owed or due

• money that is available quickly such as cash

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

mortgage

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

• something, typically money, that is owed or due

• money that is available quickly such as cash

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

fixed expense

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

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

• money that is available quickly such as cash

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

variable expense

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

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

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

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