Financial Math Vocabulary
Active Income - correct answer Income received from performing a service such as
wages, tips, salaries, and commissions.
Monetary Value - correct answer How much $ an item is bought/sold for.
Poverty Wage - correct answer The minimum level of income deemed adequate to
cover the the total cost of all the essential resources that an average human adult consumes in one year.
Living Wage - correct answer A wage that is high enough to maintain a normal
standard of living.
Fixed Expenses - correct answer Bills that are the same or very similar amounts
from month-to-month.
Intrinsic Value - correct answer How much something is worth to an individual,
personally.
Cash Flow - correct answer The total amount of money flowing into and out of a
household or business.
Passive Income - correct answer Income received from assets such as rental
properties or a business.
Asset - correct answer Item or property owned that has value and can be used to
pay debts.
Budgeting - correct answer Categorizing your spending habits, needs, and wants,
assigning spending limits to those categories, and committing to those limits.
, Short-term financial goal - correct answer Ex: Saving up an emergency fund.
Long-term financial goal - correct answer Ex: Saving for a down payment on a
house.
The Envelope System - correct answer Budgeting strategy that utilizes the
psychological advantages of paying with cash.
Poverty wage - correct answer The minimum level of income deemed adequate to
cover the the total cost of all the essential resources that an average human adult consumes in one year.
Liability - correct answer Financial debts or obligations such as loans, mortgages,
and credit cards.
Relative value - correct answer How much something is worth compared to
something else.
The Rat Race - correct answer Supporting your living expenses by working a regular
job, living essentially paycheck to paycheck.
Renewal - correct answer A new lease with similar terms to the original lease that
both parties will need to sign again.
Month-to-Month - correct answer Renting from the property owner one month at a
time.
HOA - correct answer An organization in a subdivision, planned community or
condominium that makes and enforces rules for the properties and their residents.
Prorated - correct answer Daily calculated amount of a monthly fee.
Active Income - correct answer Income received from performing a service such as
wages, tips, salaries, and commissions.
Monetary Value - correct answer How much $ an item is bought/sold for.
Poverty Wage - correct answer The minimum level of income deemed adequate to
cover the the total cost of all the essential resources that an average human adult consumes in one year.
Living Wage - correct answer A wage that is high enough to maintain a normal
standard of living.
Fixed Expenses - correct answer Bills that are the same or very similar amounts
from month-to-month.
Intrinsic Value - correct answer How much something is worth to an individual,
personally.
Cash Flow - correct answer The total amount of money flowing into and out of a
household or business.
Passive Income - correct answer Income received from assets such as rental
properties or a business.
Asset - correct answer Item or property owned that has value and can be used to
pay debts.
Budgeting - correct answer Categorizing your spending habits, needs, and wants,
assigning spending limits to those categories, and committing to those limits.
, Short-term financial goal - correct answer Ex: Saving up an emergency fund.
Long-term financial goal - correct answer Ex: Saving for a down payment on a
house.
The Envelope System - correct answer Budgeting strategy that utilizes the
psychological advantages of paying with cash.
Poverty wage - correct answer The minimum level of income deemed adequate to
cover the the total cost of all the essential resources that an average human adult consumes in one year.
Liability - correct answer Financial debts or obligations such as loans, mortgages,
and credit cards.
Relative value - correct answer How much something is worth compared to
something else.
The Rat Race - correct answer Supporting your living expenses by working a regular
job, living essentially paycheck to paycheck.
Renewal - correct answer A new lease with similar terms to the original lease that
both parties will need to sign again.
Month-to-Month - correct answer Renting from the property owner one month at a
time.
HOA - correct answer An organization in a subdivision, planned community or
condominium that makes and enforces rules for the properties and their residents.
Prorated - correct answer Daily calculated amount of a monthly fee.
