Personal Finance Garman 12E - Chapter 3
Study online at https://quizlet.com/_c6xjqy
1. Financial Planning: a process used to achieve financial success based upon the
development and implementation of financial goals and planning
2. Values: fundamental beliefs about what is important, desirable, and worthwhile
3. Financial Goals: specific objectives addressed by planning and managing fi-
nances
4. Financial Strategies: pre-established action plans implemented in specific situ-
ations
5. Summarize the financial planning process: 1. Set Specific Goals
2. Put target dates on your financial goals
3. Prioritize your goals
6. Explain the relationships among financial values, goals, and strategies.: -
Strategies are pre-established plans that help you reach financial goals that are set
based on your values (check, this is my answer to Concept Check 3.1)
7. Financial Statements: snapshots that describe an individual's or family's current
financial condition
8. Balance Sheet: snapshot of assets, liabilities and net worth on a particular date
(also called net worth statement)
9. Cash Flow Statement: A summary that shows total income and spending for a
given time period (also called income and expense statement)
10. Assets: everything you own that has monetary value
11. Liabilities: what you owe
12. net worth: What's left when you subtract liabilities from assets.
13. monetary assets: assets that can be used as cash (also called liquid assets or
cash equivalents)
14. tangible assets: personal property used to maintain your everyday lifestyle
(also called use or lifestyle assets)
15. Investment Asset: tangible or intangible items obtained for producing additional
income or held for speculation in anticipation of a future increase in value. (also
called capital assets)
16. short term liability: obligation paid off within one (also called current liability)
17. long-term liability: debt that comes due in more than one year
18. insolvent: when a person owes more than he or she owns and the person has
a negative net worth
19. Expenses: total expenditures made in a specified time such as reported on a
cash-flow statement
20. surplus: when total income exceeds total expenses such as reported on a cash
flow statement (also net gain or net income)
21. cash basis: only transactions involving actual cash received or cash spent are
recorded
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Study online at https://quizlet.com/_c6xjqy
1. Financial Planning: a process used to achieve financial success based upon the
development and implementation of financial goals and planning
2. Values: fundamental beliefs about what is important, desirable, and worthwhile
3. Financial Goals: specific objectives addressed by planning and managing fi-
nances
4. Financial Strategies: pre-established action plans implemented in specific situ-
ations
5. Summarize the financial planning process: 1. Set Specific Goals
2. Put target dates on your financial goals
3. Prioritize your goals
6. Explain the relationships among financial values, goals, and strategies.: -
Strategies are pre-established plans that help you reach financial goals that are set
based on your values (check, this is my answer to Concept Check 3.1)
7. Financial Statements: snapshots that describe an individual's or family's current
financial condition
8. Balance Sheet: snapshot of assets, liabilities and net worth on a particular date
(also called net worth statement)
9. Cash Flow Statement: A summary that shows total income and spending for a
given time period (also called income and expense statement)
10. Assets: everything you own that has monetary value
11. Liabilities: what you owe
12. net worth: What's left when you subtract liabilities from assets.
13. monetary assets: assets that can be used as cash (also called liquid assets or
cash equivalents)
14. tangible assets: personal property used to maintain your everyday lifestyle
(also called use or lifestyle assets)
15. Investment Asset: tangible or intangible items obtained for producing additional
income or held for speculation in anticipation of a future increase in value. (also
called capital assets)
16. short term liability: obligation paid off within one (also called current liability)
17. long-term liability: debt that comes due in more than one year
18. insolvent: when a person owes more than he or she owns and the person has
a negative net worth
19. Expenses: total expenditures made in a specified time such as reported on a
cash-flow statement
20. surplus: when total income exceeds total expenses such as reported on a cash
flow statement (also net gain or net income)
21. cash basis: only transactions involving actual cash received or cash spent are
recorded
1/3
