Money Management Essentials

Planning how to get the most from your money

Birth certificate, social security card, receipts, bank statements, tax forms

Plan and measure your financial progress, handle routine money matters, determine how much money you will have now and in the future

<p>Home files, safe-deposit boxes, home computers</p> Signup and view all the answers

<p>A small, secure storage compartment that you can rent in a bank, usually for $100 a year or less</p> Signup and view all the answers

<p>Valuable collectibles such as coins or stamps</p> Signup and view all the answers

<p>Technology, such as an iPad</p> Signup and view all the answers

<p>A financial statement that lists items of value owned, debts owed, and a person's net worth</p> Signup and view all the answers

<p>The difference between things you own (assets) and amounts you owe (liabilities)</p> Signup and view all the answers

<p>Assets are items of value owned, while liabilities are amounts owed.</p> Signup and view all the answers

<p>Determine your assets, determine your liabilities, calculate your net worth, evaluate your financial situation</p> Signup and view all the answers

<p>Your personal property</p> Signup and view all the answers

<p>Personal possessions, investment assets, liquid assets, real-estate</p> Signup and view all the answers

<p>Current liabilities—short-term debts that have to be paid within one year; long-term liabilities—debts that do not have to be fully repaid for at least a year</p> Signup and view all the answers

<p>Real estate takes longer to get your money back; liquid assets are fast and can be easily converted to cash.</p> Signup and view all the answers

<p>When you invest all your money into a foreign company's stock, and they become bankrupt, you lose all your money. Additionally, if your net worth lacks liquidity, your funds can be lost.</p> Signup and view all the answers

<p>Increasing your savings and increasing investments</p> Signup and view all the answers

<p>Real-estate and its market value.</p> Signup and view all the answers

<p>Being insolvent is bad because it means you are unable to pay off all of your debts.</p> Signup and view all the answers

<p>The money that actually goes into and out of your wallet and bank accounts</p> Signup and view all the answers

<p>The money left over after paying for the essentials.</p> Signup and view all the answers

<p>Fixed expenses cost the same amount each month and cannot be easily changed.</p> Signup and view all the answers

<p>Variable expenses may change from month to month.</p> Signup and view all the answers

<p>Fixed expenses + variable expenses = cash outflow</p> Signup and view all the answers

<p>Surplus: extra money that can be spent or saved; deficit: when expenses exceed income.</p> Signup and view all the answers