Page 93 - Book3E

GLOSSARY
Glossary
Back-end Ratio: monthly debt payments, excluding the mortgage or rent payment, compared to monthly salary; this ratio shouldn't exceed 36% and many lenders prefer that it doesn’t exceed 20%.
Budget: the amount of money that is available for, required for, or assigned to a particular purpose.
Budget Forms: forms created for the purpose of ensuring the right amount of money is spent for the right purpose.
Cash Ledger: a book in which is recorded the money paid into or subtracted from certain accounts, usually business accounts.
Check Register: a form or booklet on which can be recorded all deposits and withdrawals made from a checking account in order to track the balance that remains.
COBRA: Consolidated Omnibus Budget Reconciliation Act; allows workers and their immediate family members who have been covered by a health care plan to maintain coverage at their own expense if a "qualifying event" causes them to lose coverage.
Consumer Price Index (CPI): a measure of the average change in prices over a certain period of time.
Cost of Living Index: measures the cost of maintaining a certain standard of living over time periods or in regions; a useful way to consider welfare changes needed due to inflation or the monetary, fiscal, and trade policies of governments.
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