Download Net worth is the difference between what you own and what you owe

Name: ________________________________________________
NB: #4
Basics to Budgeting
A budget is also called a _________________________________
A budget has many positive uses including:
-Shows a person ______________________________
-Helps person ______________________________ and make ends meet
-Helps a person to meet financial goals
-_____________________________________________
_______________: Money earned
_______________: Money spent
_______________________: expenses are relatively ________________________
Examples: _____________________________________________
_______________________: expenses that are ___________________________ or
can be changed in short-term
Examples: ______________________________________________
_______________________: A person has _______________________________
during the budget time period
_______________________: A person has _______________________________
during the budget time period…remaining amount can go toward
_______________________
_________________: money to do with as you wish after taxes, SS, and other items
have been taken out of gross pay
_______________: total pay for the pay period before deductions, reductions and
taxes have been subtracted.
_______________: take-home pay after reductions, taxes and deduction have been
subtracted from your gross pay. This is the amount deposited into your account.
Looking Into Wealth
Describe what you believe is the difference between Income and Wealth:
Describe how people who make $10-20,000 in income more than another person have
less wealth:
Understanding your assets
 ________________: the __________________________________________
o A high income does not make a person wealthy.
 Wealth is increased as the value of ___________________________________.
o ________________ to net worth and wealth.
o _________________ net worth and wealth.
 ________________________: ______________________________________
 ________________________: ______________________________________
o Income is not an asset.
o Income allows a person to ________________