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Argylls PF 5
| Term | Definition |
|---|---|
| Money Management | Getting the most out of your money |
| Safe-Deposit Box | Store important papers and small items in this |
| Balance Sheet | Show assets, liabilities and net worth |
| Assets | Things one owns |
| Liabilities | Amounts own owes |
| Net Worth | The difference between what one owns and owes |
| Market Value | Price that an item would currently sell for |
| Long-Term Liabilities | Debts that are not fully paid after one year |
| Insolvency | Inability to pay debts when they are due |
| Cash Flow | Movement of money coming in and out |
| Take-Home Pay or Net Pay | The amount of income left after all deductions |
| Discretionary Income | Money you have left over after paying all essentials |
| Surplus | Positive cash flow-more money coming in than spent |
| Deficit | Spend more than you receive |
| Budget | A plan for saving and spending |
| First step of a Budget | Set your financial goals |
| Last step of a Budget | Review spending and savings patterns |
| Four Characteristics of and effective budget | Carefully planned, Practical, Flexible, Easily Accessible |
| Best way to "Pay yourself first" | Direct Deposit |
| Fixed Expenses | Expense amounts that do not change |
| Variable Expenses | Expense amounts that are not the same each month |
| Budget Variance | The difference between the budgeted and actual amount |