MY MONEY MANAGEMENT GLOSSARY

Name: Abigail Thomas

Grade: 105

Teacher: Mrs. Henry-Gordon

Assets- Any resources owned by an individual.

Balance Sheet- Statement of a family’s assets, liabilities and its resulting net
worth.

Budget- The document or sets of documents that are used during the process of
budgeting to record the income and expenditure.

Budgeting- The process of planning, organizing, monitoring and controlling

future income and expenditure.

Chequing Account Budget- Makes use of the individual’s or family’s chequing

account.

Combination budget- Makes use of the envelope budget, chequing budget and
savings account budget.

Envelope budget- Money for the planning period is divided and placed in
separate envelopes labelled with the purpose for which the money is to be spent.

Expenditure- An amount of money that has been spent.

Fixed Expenses- Set amounts that are usually paid in the same amount during
each time period.

Flexible expenses- Items that come up regularly in the budget but in varying
amounts and frequency.

Gross Income- The total income earned by an individual on a pay check before
taxes and other deductions.

Income- Is the revenue a business earns from selling its goods and services or
the money an individual receives in compensation for his or her labour,
services, or investments.

Legal Tender- Any means or payment that is accepted by law in settlement of a

debt.

Liabilities- A thing for which someone is responsible, especially an amount of

money owed.
Money Management- The process of budgeting, saving, investing, spending or
otherwise overseeing the capital usage of an individual or group.

Net Income- Also called net profit, is a calculation that measures the amount of
total revenues that exceed total expenses.

Net worth- Is the value of all the non- financial and financial assets owned by
an institutional unit or sector minus the value of all its outstanding liabilities.

Savings Account Budget- Uses a savings account for depositing money.