Personal Finance: Section 4.1 & 4.2 Vocabulary #2

Items that are very costly, often filling emotional wants rather than physical needs

Things people desire for reasons beyond survival and basic comfort

Amount of money a person has to spend after needs are met

Expenses, or items for which you must spend money

Result when cash outflows exceed cash inflows

Assets that grow in value are said to

Money and items of value that you own

Costs that do not change each month

A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment

Budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories.