Shared Flashcard Set

Details

80.1 & 8.02 & 8.03
N/A
61
Finance
9th Grade
05/01/2013

Additional Finance Flashcards

 


 

Cards

Term
save
Definition
To set aside present income for future use
Term
invest
Definition
To put money to work earning interest over time
Term
profit
Definition
Money remaining in a business after expenses are paid
Term
interest
Definition
Money paid for the use of someone else’s money over a period of time
Term
return
Definition
The income that can be made on an investment
Term
liquidity
Definition
How easily an asset can be converted into cash
Term
volatility
Definition
How easily the interest or cash value of an investment can change
Term
risk
Definition
The possibility of earning or losing money from an investment
Term
transaction
Definition
A saving/investing activity---e.g., deposits, withdrawals, and transfers
Term
savings account
Definition
An account in a bank/financial institution for saving, making deposits/withdrawals
Term
money market
Definition
A savings account in which deposits are invested to yield additional earnings
Term
CD
Definition
A certificate of deposit stating money has been deposited for a specific time
Term
savings bond
Definition
A debt certificate issued by the U. S. Treasury that is not transferable
Term
IRA
Definition
An Individual Retirement Account used to save money for retirement
Term
Koegh plan
Definition
A tax-deferred retirement plan for self-employed people
Term
Roth IRA
Definition
A personal savings plan; contributions are not tax-deductible; earnings are tax-free
Term
stock
Definition
A share of ownership and interest in the assets and earnings of a company
Term
common stock
Definition
Stock in a public corporation; returns vary, but higher risk
Term
preferred stock
Definition
Stock with fixed dividends, less risk
Term
blue chip stock
Definition
Stock from large companies, less risk
Term
growth stock
Definition
Stock from growing companies, more risk
Term
penny stock
Definition
Stock that costs less than $1 per share; extremely high risk
Term
bond
Definition
A certificate of debt given by a company or government that entitles the
bondholder to the original amount plus interest paid by a set date
Term
mutual fund
Definition
A group of investments held in common with shares owned by individual investors
Term
financial planning
Definition
A process of tracking and anticipating income and expenditures
Term
financial goal
Definition
A specific aim to be accomplished with the use of financial planning
Term
continual
Definition
Ongoing, without ending
Term
cyclical
Definition
Occurring in a cycle, with steps repeated in sequence over and over
Term
wealth
Definition
Having a large amount of money or property
Term
living within one’s means
Definition
Being able to pay all expenses with available income
Term
financial statement
Definition
A document or tool that shows personal financial information/data
Term
balance sheet
Definition
A financial statement that shows the assets, liabilities, and net worth of an individual or family on a set date
Term
asset
Definition
Anything with monetary value that a person owns
Term
liability
Definition
Anything that is owed to someone else; a debt
Term
net worth
Definition
The amount of money remaining when total liabilities are subtracted from total assets
Term
income and expense statement
Definition
A financial statement that shows all income and expenses of an individual or family during a specific time period, usually a month or a year
Term
cash flow
Definition
The income and expenses of an individual or family during a time period
Term
income
Definition
Total earnings received
Term
expense
Definition
Any expenditure; anything that costs money
Term
net gain
Definition
The amount of money one has after subtracting expenses from income
Term
net loss
Definition
The amount of additional money needed when expenses are greater than income
Term
spending plan
Definition
A financial statement used to plan income and expenses for a future time period; also known as a budget or financial plan
Term
income
Definition
Money earned---from wages, salaries, tips, withdrawals from savings, interest earnings, scholarships, sales of properties or possessions, gifts, etc.
Term
expense
Definition
Money spent---for both fixed and flexible expenses; an expenditure
Term
anticipated
Definition
An amount of income or expense that is expected, planned, or projected
Term
actual
Definition
An amount of income or expense that was really earned or spent
Term
fixed expense
Definition
An expense that is due by a certain date, often agreed upon in a contract, and difficult to change in a short time
Term
flexible expense
Definition
An expense that is not due by a certain date and is easy to reduce or eliminate
Term
specific financial goal
Definition
A financial goal that states exactly what is to be done with money
Term
measurable financial goal
Definition
A financial goal that gives an exact dollar amount
Term
attainable financial goal
Definition
A financial goal for which one can determine how to reach it
Term
realistic financial goal
Definition
A financial goal that is affordable and doable
Term
time-bound financial goal
Definition
A financial goal that states exactly WHEN the goal needs to be reached
Term
organize spending plan
Definition
Determine appropriate recordkeeping format, select categories and time period
Term
decide
Definition
Make realistic decisions and estimates for categories of the spending plan
Term
implement
Definition
Put the spending plan into effect
Term
control
Definition
Keep accurate records while the spending plan is being implemented
Term
evaluate
Definition
Determine how well the spending plan process has worked
Term
envelope system
Definition
Placing exact amount of cash for an expense in a labeled envelope
Term
spending plan
Definition
A financial statement used to track expenses from day to day
Term
check register system
Definition
Tracking expenses in a checkbook register divided into spending plan categories
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