Basics
What is the term for money you receive, like a paycheck?
What is income
What is the first type of savings you should build for emergencies?
What is an emergency fund
Is housing a need or a want?
What is a need
What simple document lists your income and expenses?
What is a budget
What is the term for a monthly charge you pay to use a service, like Netflix or Spotify?
What is a subscription
What is the term for money you spend on things you need or want?
What is an expense
How many months of living expenses should a strong emergency fund cover?
What is 3 to 6 months
Are daily restaurant meals a need or a want?
What is a want
What happens if your expenses are higher than your income?
What is a deficit (or being in the negative)
What is the term for buying something on impulse without planning for it first?
What is impulse buying
What type of expense stays the same every month, like rent?
What is a fixed income
What rule says you should spend 50% on needs, 30% on wants, and 20% on savings?
What is the 50/30/20 rule
Is basic grocery shopping a need or a want?
What is a need
What happens if your income is higher than your expenses?
What is a surplus (or savings)
What strategy involves waiting 24 to 48 hours before making a non-essential purchase?
What is the cooling-off rule (or the 24-hour rule)
What type of expense changes month to month, like groceries or gas?
What is a variable expense
What is money set aside for a specific future purchase called?
What is a savings goal
Is a brand new designer jacket a need or a want?
What is a want
What is a digital or paper method to record every dollar you spend?
What is an expense tracker
What is the term for comparing prices at different stores to get the best deal?
What is comparison shopping
What is the amount of money you take home after taxes and deductions are removed from your paycheck?
What is net income (or take home pay)
What budgeting method assigns every single dollar of your income a specific job so your income minus expenses equals exactly zero?
What is zero-based budgeting
What is the cost of choosing one item over another, representing the value of the next best alternative you gave up?
What is opportunity cost
What cash-based budgeting system involves putting set amounts of physical money into labeled paper pockets for different spending categories?
What is the envelope system
What is the strategic habit of looking at your budget every week or month to compare your planned spending against your actual spending?
What is a budget reconciliation (or budget review)