Financial Algebra Vocabulary #1 (Budgeting, Credit, & Insurance)

What is Net Worth?

• The amount of money you earn before any deductions

• The value of your investments

• The total of all your monthly expenses

• The difference between your assets and liabilities

What is Gross Income?

• The income left after taxes and deductions

• The total income before any taxes or deductions

• The amount of income that is disposable

• The income after paying off debts

What is a Variable Expense?

• An expense that stays the same each month

• An expense that can change in amount each month

• A long-term fixed expense

• An unexpected expense

An Unbalanced Budget occurs when:

• Your expenses are less than your income

• Your income and expenses are equal

• Your expenses exceed your income

• Your income exceeds your expenses

What is a Fixed Expense?

• An expense that fluctuates each month

• An expense that remains the same each month

• An unexpected expense

• A seasonal expense

Which of the following is an example of a Utility Expense?

• Car insurance

• Mortgage payment

• Electricity bill

• Grocery bill

What are Assets?

• Financial obligations you owe

• Loans taken from banks

• Monthly expenses

• Resources you own that have economic value

What does Liability refer to?

• An asset that has economic value

• A budget that is balanced

• A financial obligation or debt owed

• Income after all expenses

A Balanced Budget is:

• A budget where expenses exceed income

• A budget where income exceeds expenses

• A budget where income and expenses are equal

• A budget that is not planned

What is Balanced Billing?

• A payment method that allows consistent billing amounts each period

• A method to ensure bills are paid on time

• A type of budgeting plan

• A credit payment plan