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Debt-to-income Ratio: your monthly debt payments, excluding the mortgage or rent payment, compared to your monthly earnings.
Discretionary expenses: expenses which are optional and made by choice such as gifts, vacations, or entertainment.
Down Payment: a part of the full price paid at the time of purchase or delivery with the balance to be paid later.
Expenditures: items or bills which require money to be spent to acquire or fulfill them.
FDIC: Federal Deposit Insurance Corporation.
Fixed expenses: bills that are not subject to change or fluctuation
and that occur on the same date from year to year.
Front-end Ratio: the percentage of your monthly gross income that is spent on your total mortgage (including principal, interest, taxes, insurance) or rent.
Home Equity: the difference between money owed on a property and the current market value of the property.
Hyperinflation: when prices rise 100% or more in a single year. Inflation: the increase in cost of an item over a period of time for which
there is not a corresponding increase in quality.
Joint Account: a bank account which two or more people have the right to access.
Life Insurance: a contract between a policy owner and an insurer where a policy owner agrees to pay a premium at regular intervals and an insurer agrees to pay a sum of money upon the policy owner's death.
Monthly Budget Summary: a form on which you can record what you budgeted and what you actually spent for the month.
Monthly Net Income: money that remains after all non-discretionary expenses have been paid.
Glossary