Vocabulary - Creating a Personal Budget

What is the definition of "Assets"?

• Individual’s belongings which have value

• Individual’s expenses and outstanding debts

• Goals set to be achieved in about five to ten years

• Process of creating a financial plan to spend and save money

What does a "Budget" summarize?

• Individual’s belongings which have value

• Itemized summary of the expected income and expenses for a defined period

• Goals set to be achieved in about ten or more years

• Categories in which people can be put based on their spending and saving habits

Who is a "Flyer"?

• Individual who does not consider money as a necessity and does not have much of an opinion on money

• Individual who enjoys investing money into high-risk ventures

• Individual who likes to save money rather than spend money

• Individual who plans for the future and is prepared for any financial situation

What are "Intermediate-Term Goals"?

• Goals set to be achieved in about five to ten years

• Goals set to be achieved in about ten or more years

• Individual’s expenses and outstanding debts

• Process of creating a financial plan to spend and save money

Who is a "Saver"?

• Individual who likes to save money rather than spend money

• Individual who enjoys investing money into high-risk ventures

• Individual who plans for the future and is prepared for any financial situation

• Individual who does not consider money as a necessity and does not have much of an opinion on money

Who is a "Security Seeker"?

• Individual who plans for the future and is prepared for any financial situation

• Individual who enjoys investing money into high-risk ventures

• Individual who likes to save money rather than spend money

• Individual who does not consider money as a necessity and does not have much of an opinion on money

What is the definition of Short-Term Goals?

• Goals set to be achieved in less than a year's time

• Goals set to be achieved in more than a year's time

• Goals set to be achieved in less than a month's time

• Goals set to be achieved in less than a week's time

What are Spending Needs?

• Expenditures which are essential for an individual to live and function

• Expenses which help an individual to live more comfortably

• Expenditures which are optional

• Expenses which are for luxury items

What are Spending Wants?

• Expenditures which are essential for an individual to live and function

• Expenses which help an individual to live more comfortably

• Expenditures which are mandatory

• Expenses which are for luxury items

Which of the following best describes a Spender?

• Someone who saves all their money

• Someone who enjoys spending money on themselves or others

• Someone who invests in stocks

• Someone who avoids spending money