Unit 2 Personal Finance

Costs that can go up and down each month

• Variable Expenses

• Assets

• Liabilities

• Fixed Expenses

Money and items of value that you own

• Net Worth

• Assets

• Liabilities

• Fixed Expenses

Costs that do not change each month.

• Variable Expenses

• Assets

• Liabilities

• Fixed Expenses

Debts that you owe

• Net Worth

• Assets

• Liabilities

• Fixed Expenses

The difference between your assets and liabilities

• Net Worth

• Assets

• Liabilities

• Fixed Expenses

Things you want to achieve in your life.

• Personal Goals

• Financial Goals

• Assets

• Financial Plan

A spending and saving plan based on expected income and expenses

• Personal Goals

• Financial Goals

• Budget

• Financial Plan

A set of personal and financial goals, along with steps and timelines for reaching them

• Personal Goals

• Financial Goals

• Budget

• Financial Plan

Interest earned on both principal and previously earned interest

• Compound Interest

• Simple Interest

• U.S. Savings Bond

• Money Market Account

A discount bond issued by the federal government that pays a guaranteed rate of interest

• Certificate of Deposit (CD)

• Simple Interest

• U.S. Savings Bond

• Money Market Account