EXPENSE

the cost required for

something; the money
spent on something.
 BUDGE
T
an estimate of income and
expenditure for a set period
of time.
 What Are the benefits of a budget?

Helps you organize your spending and

savings – By dividing your money into
categories of expenditures and savings, a
budget makes you aware which category
of expenditure takes which portion of
your money.
 Gross Income

The money earned before taxes

are deducted (withheld/taken
out).
 INCOME TAXES

Money withheld
by your
employer to pay
your taxes to
the government
 NET INCOME

Money earned after

taxes have been
withheld:
“take home pay”
 Monthly versus Annually
Per month versus per year

Divide “annual” by 12 to find monthly

Multiply “monthly” by 12 to find annual

 RENT
a tenant's regular
payment to a
landlord for the
use of property or
land.
 MORTGAGE

a legal agreement by which a bank

or other creditor lends money at
interest for a buyer to buy a house
 LOAN
a thing that is
borrowed, especially a
sum of money that is
expected to be paid
back with interest
 TWO PARTS TO A LOAN:

PRINCIPLE INTEREST
Interest is the charge
The principle for the privilege of
of a loan is the borrowing money,
amount typically expressed as
annual percentage
borrowed rate (APR)
 AMORTIZE

reduce or extinguish (a
debt) by money regularly
paid.
 DOWN PAYMENT

An initial payment made when

purchasing on credit
 lEASE

Contractual agreement between 2

parties for the use of an asset in
exchange for recurring payments
 SALES TAX
DEFINITION EXAMPLE
• Extra money added • Sales tax in Pasco Co. is
onto a good or 7%
service (represented • $500 item plus tax
in a percentage) that • $500 * 0.07 = $35
goes to the • $500 + $35 = $535
government to pay • Or $500 * 1.07 = $535
for things like schools, to find total in one step
parks, roads etc.
AMORTIZATION
SCHEDULE/TABLE
In a loan amortization schedule, the
principle and interest are separated,
(so you can see which part of your
monthly payment goes to paying off
the principle, and which part is used
to pay interest.)
 The 4 most important things found on an
amortization schedule are:

• Monthly payment
• Principal breakdown
• Interest breakdown
• Balance
APPRECIATE VS DEPRECIATE
APPRECIATE DEPRECIATE

• TO INCREASE OR
GO UP IN VALUE • TO DECREASE OR
GO DOWN IN
VALUE