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.