Personal FInance

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 Define and discuss the following:

  • The purpose of a Personal Cash Flow Statement
  • The purpose of a Personal/Household Budget
  • The difference(s) between a Personal Cash Flow Statement and a Personal/Household Budget in terms of the data, and in terms of the use of the data (i.e., where does the data come from, and what is the data used for?)
  • Challenges you may face developing the cash flow estimate
  • Describe an emergency fund, its use, how it is built
  • The following terms:
    1. Take-Home Income
    2. Monthly Living Expenses
    3. Secured Debts
    4. Unsecured Debt
    5. Disposable Income
    6. Disposable income as a percent of total income