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Budgeting and Saving

TermDefinition
Interest the fee someone pays to be able to borrow money
Principal the sum of money you put into an account; the amount of money you owe on a debt
Compound Interest earning interest on your interest
Rule of 72 a method for estimating how long it will take compound interest to cause a principal to double
Budget an itemized summary of probable expenditures and income for a given period
Defecit the amount by which expenditures exceed income
Fixed Expense an unchanging expenditure
Income money recieved
Surplus the amount of money remaining after all expenses have been met
Flexible Expense an expenditure that varies
Created by: tmikels52