Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
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Budgeting Terms <strong>and</strong> Definitions<br />
Budgeting - the responsible management of money<br />
Parents often have a budgeting plan for a child’s wedding.<br />
Debt - an amount of money that is owed<br />
Many people accumulate debt by using credit cards for items they can’t afford.<br />
Expenses - products <strong>and</strong> services that money is spent on<br />
Your personal expenses may include rent, food, <strong>and</strong> utilities.<br />
Income - money earned or received from other sources<br />
The IRS (Internal Revenue Service) requires you to report your income on your tax form.<br />
Insurance - protection against damage, loss, theft, <strong>and</strong> other adverse situations<br />
You must have car insurance to drive in Massachusetts.<br />
Loan - money that is borrowed <strong>and</strong> must be paid back<br />
He took out a loan from the bank to pay for his new car.<br />
Mortgage - long-term loan secured by property such as buildings or l<strong>and</strong><br />
Most people use a mortgage to buy their first house.<br />
Rent - a payment made for the use of leased property<br />
Every month she has to mail her rent check to the l<strong>and</strong>lord.<br />
Salary - earned income<br />
The employee asked his boss for a raise in salary.<br />
Tuition - money or fees required to attend educational institutions<br />
Private universities usually charge higher tuition than state schools.<br />
Utilities - resources such as electricity, heat, water for a home or business<br />
Some utilities such as a phone may have a fixed monthly rate.<br />
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