Assets: Property owned by a person.

Balanced budget: A budget in which the income and expense sides must equal each other.

Balance sheet: A statement of both sides of a set of accounts in which the debit and credit balances add up as equal.

Budget: A plan for saving and spending money based on your income and expenses.

Certificate of Deposit (CD): A certificate issued by a bank to a person depositing money for a specified length of time.

Day of Deposit: A certain day on which money is brought into an account.

Day of Withdrawal: A certain day on which money is taken out of an account for an expense.

Expenditures: Costs or expenses.

Financial Planning: The act of deciding what amount of money to save and knowing why it is being saved.

Fixed Expenses: Costs that do not fluctuate, such as monthly car payments and rent cost.

Income: Monetary payment received for goods or services.

Liabilities: The amounts of money owed.

Money-market Account (MMA): A non financial account that pays interest based on current interest rates in the money markets.

Net Worth: The difference between assets and liabilities, or what is left over from paying all the bills.

Passbook Account: A book that reflects all deposits, withdrawals, and interest accumulated.

Savings Certificate Account (CD): An account in which the minimum must be deposited for a specific period of time.

Statement Savings Account: An account in which a statement is given monthly or quarterly (every three months) showing all transactions in the account.

Variable Expenses: Costs that fluctuate according to changes in activity level, like food, telephone, electricity, and clothing, and can change from month to month or season to season.

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