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PCS Personal Fin

Personal Finance Key Terms Ch. 3

TermDefinition
budget a written cash flow plan
cash flow statement a summary that shows total income and spending for a given time
carbon check a copy of each check you write
envelope system series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses
impulse purchase an item that is bought without previous planning or consideration of the long-term effects
overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero
reconcile to match your bank statement with your checkbook
zero-based budget a cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero
Created by: Ms.Sala