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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 or the amount of money (minus interest) you owe on a debt
Compound Interest getting interest on interest
Rule of 72 a method for estimating how long it will take compound interest to double the savings
Budget An itemized summary of probable expenditures and income for a given period.
Deficit The amount by which expenditures exceed income.
Fixed Expense An expenditure that does not vary
Income Money received.
Surplus The amount of money remaining after all expenses have been met.
Flexible Expense An expenditure that varies.
Created by: amiller96
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