Chapter 4 Money Management

Expenses or items for which you must spend money

A comprehensive plan listing goals along with steps and a timeline for reaching them

How are personal and financial goals related?

A spending and saving plan based on expected income and expenses

Why does Mr. Kampf use an excel spreadsheet to keep track of his budget?

Money or other items of value that are used to acquire goods and services

Keeping good records will help you prepare a better budget.

Things people desire for reasons beyond survival and basic comfort

You can build your vocabulary by reading.

Why is it beneficial to analyze variances in your budget?

Basic needs are those needs that allow you to have a comfortable lifestyle.

The amount of money you have left to spend when your needs are met..

One way to increase wealth is to spend less than you make.

Things you want to achieve in life.

Donating money or time to a cause in which you believe

Wealth is measured on the personal net worth statement.

Things needed for survial, such as food, clothing, and shelter

Financial resources are unlimited and growing.

What should you NOT ask yourself when you are looking over your finances?

Costs that can go up or down each month

Which of the following is NOT a step in creating a budget?

Soft-copy formats of your financial information stored on your computer

By doing without or putting off buying an item right away you delay...

A personal net worth statement lists incoe and expenses.

Which of the following is NOT a step in the decision making process?

Short term goals are goals that can be achieved...

Recieved a pay raise will allow you to increase your discretionary income.

Long term goals are goals that can be achieved...

The difference between assets and liabilities

Medium term goals are goals that can be achieved...

Process of converting daa to a coded form

A visual display of how long it will take to achieve each phase of a plan

A favorable variance results from spending less than you budgeted for spending.

A professional consultant who provides financial advice for a fee or commission

Charitable giving is a mandatory fixed expense.

Differences between planned amounts and actual amounts

Balancing your budget is a simple six-step process.

The use of your personal information by someone else to committ fraud or other crimes

Plans for how you will pay for your personal goals

A tradeoff is the value of what you are giving up when you a make a purchase.

Micorosoft Word is an example of a spreadsheet program.

Costs that do not change each month

Debts that you owe

Giving up one option in exchange for another.

A scam in which an email is sent from someone posing as your bank asking for personal information

The amount of money a person has to spend after needs are met is called discretionary income.

Money and items of value that you own

Standards against which progress is measured

Income from your job, investments, and other sources

The value of your next best option - what you are giving up

People who do not have their basic need met are not able to provide for other needs or wants.

Which of the following is NOT a step in developing a financial plan?