Personal Finance Workbook

Definitions and Terms
Adjusted Gross Income. For taxes, gross income minus certain business and employment related expenses.

Assets. Items owned by a person or business, being financial or non-financial, tangible or intangible.

Bankruptcy. The state of having liabilities exceeding assets; or the inability to be able to pay bills as they come due; resulting in filing for protection from the Federal Courts.

Budgeting. Planning income and expenses to achieve a financial planning goal.

Charge Account. A form of consumer credit where credit is pre-granted to a specified amount.

Deductibles. Amounts not covered by insurance policies for loss, usually on an occurrence basis.

Dis-savings. Taking money from savings to pay for current ongoing living expenses.

Effective Rate of Interest. The actual rate of interest being paid over a period of time, usually one year. Sometimes referred to as APR (annual percentage rate).

Financial Plan. A written document of plans and goals accomplished through specific means and measured for success.

Income and Expense Statement. A financial statement which shows income and expenses for a period of time, usually one year.

Interest. The charge for the use of money; also known as the cost of money.

Joint Accounts. A property co-owned in an agreement by which either party may deposit or

Biblical Position on Giving, Savings, and Debt

Introduction

Needs and Desires

The Debt Trap

The Ease of Debt Growth

Debt Repayment

The True Cost of Debt

Plotting Financial Goals

Gifts Given Record

Debt Records

Statement of Net Worth

Monthly Income Statement

Monthly Cash Flow Recording Sheet

Percentage Guide

Income Graph

Where Do We Go From Here?

Biblical Guidelines

Financial Objectives

Glossary of Terms

Reference List & Acknowledgements

withdraw and the survivor of the agreement is full owner upon the death of the first.

Liquid Assets. Assets easily converted to cash.

Net Worth. The difference between assets and liabilities; usually for a point in time.

Replacement Value. The cost to replace an item with a new (exact) item. This usually pertains to home owners insurance contracts.

Will. A legal document that gives direction to the distribution of a deceased person’s estate.

Yield. The actual rate of return on an investment.
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