Personal Finance Chapter 2 Vocabulary

Front

personal financial plan

Back

specifies financial goals and describes in detail the spending, financing, and investing plans needed to reach those goals

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asset

Back

something owned

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budget

Back

a list of planned expenses and income

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equity

Back

ownership in something

Front

interest

Back

fee charged by a lender on money borrowed

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liability

Back

what is owed (debt)

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cash inflow

Back

money received

Front

cash outflow

Back

money spent

Front

expense

Back

anything on which money is spent

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risk

Back

the potential of financial loss