28 Flashcards
(12 cards)
personal financial planning
spending saving and investing so u can enjoy life w financial stability
goals
what u want to accomplish
steps to pfp
determine ur financial situation
develop ur financial goals
identify coures of action
evaluate ur alternatives
implement a plan of action
review and revise ur plan
financial info sources
internet magazines newspaper
types of financial risk
inflation
liquidity
interest rate
personal
income
opportunity cost
what u give up when u make one choice instead of another
money management / budgeting
planning to use ur income to meet wants and needs
steps
set financial goals
estimate income
budget for unexpected expenses
budget for fixed expenses
budget for variable expenses
record what u spent
income
amt of money u earn or receive in a given period
gross pay - total money earned in a period
deductions - amts taken out of ur paycheck
net pay - gross pay minus deductions
income
amt of money u earn or receive in a given period
gross pay - total money earned in a period
deductions - amts taken out of ur paycheck
net pay - gross pay minus deductions
expenses
amt used to buy or do smth
fixed : regular
variable : changes and can be controlled more easily than fixed
budget variance
difference between budgted amount and actual amt that u spent
surplus : extra money that can be spent or saved based on goals or values
deficit : more money spent than earned or received
