Chapter 2 Personal Financial Planning

Asset - Is item of value that's is owned, such as cash, stocks, bonds, real estate, and personal possessions. Budget - Is a plan for the use of money over time based on goals, expenses, and expected income. Cash Flow Statement - is a summary of the amount of money received and the amount paid for goods and services during a specific period. Charity - Usually refers to an organization that aids those in need, such as homeless or victims of natural disasters. Data Analysis - Is the process of studying data with the goal of discovering new information that can help with making decisions. Discretionary Expense - Is an amount spent for an item that a person could do without Discretionary Income - Also known as disposable income, is the money that remains after a person has paid all of his or her expenses. Emergency Fund - Is an amount of money th