assets - liabilites = _______
net worth (owner's equity)
savings accounts and a home are examples of
- net worth
- cash outflow
the amount of money that could be claimed if all assets were sold for cash and all debts were paid off
What is the first part of a cash flow statement?
cash inflows / income
a listing of a person or family's ____ is the second items on a balance sheet
if you set ____, make wise decisions, buy wisely, and live within your income, you will be a successful money manager
if you set goal, make wise decisions, buy wisely, and live within your income, you will be a successful money manager
a family has $189,000 in assets and $87,000 in debts. What is their net worth?
money management involves getting the most for your money through _____ planning
money management involves getting the most for your money through careful planning
what are some examples of cash outflows?
- mortgage payment
- personal care
_____ ahead and deciding what is important will help you have money for things you enjoy
planning ahead and deciding what is important will help you have money for things you enjoy
give some examples of cash inflows
- net income / take home pay
- interest income
- rental income
if you spent less than you had in income then.....
you have an increase in your net worth, this extra money most likely will be kept in your savings account for the future
what do cash outflows represent?
money paid out by a person or family during a specific period, normally a month
What reports what a person or family owns as well as owes?
net worth: $67,800
assets = $73,400
how much time does a cash flow statement cover?
usually a month
According to the Bureau of the Census, what are the main assets in US households?
- motor vehicles
- savings accounts
- US savings bond
- certificates of deposit
- mutual funds
- corporate bonds
- retirement accounts
keeping track of how much is ____ on living expenses will help you plan and control your spending
keeping track of how much is spent on living expenses will help you plan and control your spending
net worth: _______
if you spent more than you had in income then....
you either had to use some of your savings or credit to pay the additional expenses
amounts owed to others
What are some examples of liabilities found on a personal balance sheet?
- home mortgage
- education loan
- credit card balance
- car loans
- personal loans
reports net wages and other income along with spending for a period
cash flow statement
if you learn to manage your money well, you will be able to ____ what you really want
if you learn to manage your money well, you will be able to buy what you really want
What are some characteristics of a wise money manager?
- set goals
- make wise decisions
- buy wisely
- live within your income
listed on the second part of a cash flow statement
What are some examples of assets on a personal balance sheet?
- household items and furniture
- personal computer
- investments (stocks, bonds, etc)
- rare coins
- savings account
- checking account
The current value of all ____ of an individual or family is the first thing stated on a balance sheet
items of value
how often are balance sheets prepared?
monthly or quarterly (every 3 months)