Methods
What method prioritizes spending on needs, wants, and savings
What is the 50/30/20
Where does the U.S spend most of its money
Where is the Military/ Homeland Security
What is a budget( One of the Bullet points, any count)
What is:
- an estimate of income and expenditures for a set period of time
-a set or finite amount of spending
-a "cheaper" or less expensive version of somthing
What is a pro of the envelope method
What is Tangible money, prevents impulse purchases, planning ahead requires you to budget better, and allows creativity within your budget
What is one con of the envelope method
What is:
-Putting everything into cash is not the most efficient method in 2026
-Does not allow for emergencies/contingencies unless specifically planned for
-Hospital, pet health scares, pregnancy, etc.
-Time-consuming
What method is to be based on one's personal interests/hobbies
What is the value-based method
What are the two types of spending
What is Discretionary, and non-discretionary spending
Where do we see budgets(3 answers)
Where are personal life, businesses, and governments
What is the 50/30/20's biggest pro
Works across all income levels, can adapt to varying levels
What is a major con of the 50/30/20
What is: Assumes you have consistent monthly pay
List all 5 methods
Envelope, 50/30/20, pay yourself first, value-based, zero-based
What is one country we are in Massive debt to
China, India
Why do we Budget
Why do we have enough money for our futures/ a long-term plan, helps save money
What are 2 of the pay yourself first method pros
What is easy to follow, savings are prioritized, or quickly build up savings
What is a major con of the Pay Yourself First method
What is it doesn't allow for emergencies due to auto transactions
What are 2 methods that are very time-consuming
What are
Envelope, Zero-based,
Why was there a spending gap in 2018
COVID 19
What is the name for an emergency fund
What is a rainy day fund
What are all the pros of value-based budgeting
What are:
-Tailored to you by you
-Can be changed depending on your life circumstances
-Allows you to enjoy your life the way you want
What is a zero-based con for a long-term goal
what is:
-Long-term goals might be cut before they have time to come to fruition
What are 2 cons to the Pay yourself first method
what are
1. Doesn't allow for unexpected emergencies
2. Improper planning can lead insufficient funds
What time gaps caused a spike in the United States sending
1997-2001:
2018-2022:
What are three examples of proper usage of a rainy day fun
What are house renovations, a loan payment, or an unexpected pregnancy
What is one of the three zero-based methods' pros
What are
-Forces a person to re-evaluate their choices each month and explain why they need each expense
-Continual evaluation of choices each month means salary increases/decreases are always accounted for
-Businesses can use this to find ways to be more efficient
What are the two cons of the value-based method
what is
-Does not prioritize long-term goals if that is not something you want
- Can lead to overspending/not being able to cover what you need
-Values can change • Can lead to you feeling like you have “lost” money due to previous financial choices