Budget Basics
This type of budget ensures every dollar is assigned to a category, leaving nothing unplanned.
What is a Zero-Based Budget?
This cost is hardest to reduce: car loan, dining out, new clothes, or postponing a TV
What is the car loan payment?
This popular digital tool can automatically track spending, link to your bank accounts, and help you set financial goals.
What is a budgeting app?
You should do this when trying to reduce food costs.
What is cook your own meals at home?
The most expensive item in your budget expense.
What is rent/What is housing?
This is the term for your income after taxes and deductions.
What is net pay?
One way to tell a want from a need when shopping is to ask this question.
What is "Can I live without it?" (or similar personal rationale)
This rule of thumb says you should save first, before spending on anything else.
What is “Pay Yourself First”?
Greg’s commute is 2 hours one way using public transit. He should consider this.
What is buying a car?
Money you earn from working.
What is income?
This rule recommends splitting your income into 50% for needs, 20% savings, and 30% for wants.
What is the 50/20/30 Rule?
This type of expense includes things like food, shelter, clothing, and healthcare.
What are needs?
Budgeting tools often help you set these, which are measurable steps toward long-term financial well-being.
What are financial goals?
Before going grocery shopping, making this can help you stay on budget and avoid overspending.
What is a grocery list?
What steps can you take over time to make sure that your budget works for you?
What is monitor and revisit your budget monthly?
“Pay yourself first” means doing this with your income.
What is set aside savings before spending?
You want to go to a concert, but your rent is due the same weekend. According to smart budgeting, this is the priority.
What is rent?
This popular spreadsheet software by Microsoft is often used to create and track budgets.
What is Excel?
Tracking what you spend and reviewing your purchases helps you avoid this common problem.
What is overspending?
Give an example of each of the following and explain why:
- Fixed expense
- Variable expense
Rent/mortgage
Food bill
Car note
electricity
This document outlines your income, spending, saving, and financial goals—allowing you to take control of your finances and avoid debt.
What is a personal budget?
True or False: All clothing purchases are considered needs.
What is false?
The term for income left over after all fixed and necessary expenses have been paid.
What is discretionary income?
Smart spenders set money aside for unexpected situations in this type of fund.
What is an emergency fund?
This budgeting term means spending more than you earn.
What is a deficit?