Budgeting Vocab
Blaire works 40 hours per week at her job as a cashier. She makes $17.25 per hour. Blaire decides she is going to work during the weekend. Her work agreed to pay her time and a half for work that brings her over 40 hours. What can we call Blaire’s work on the weekend?
Overtime
Hudson earns $14 an hour and works 23 hours a week. He worked a short two-hour shift that he and his boss agreed he would be paid double time for. How much did he make in total?
$378
Net income = $2,400
Expenses = $2,400
What is the result?
Balanced
25% of $2,000 net income goes to housing. How much is that?
$500
Which creates more financial risk with variable income: high fixed expenses or high variable expenses?
High fixed expenses
What is fixed income?
A predictable, consistent amount of money earned on a regular schedule.
Tenleigh earns $20/hour and works 40 regular hours and 4 hours at time and a half.
Her deductions total 20%. What is Tenleigh's net income?
$736
Net income = $3,000
Expenses = $3,250
What is the monthly result?
$250 deficit
40% of $3,500 net income goes to fixed expenses. How much?
$1,400
Why are variable expenses usually adjusted first in a tight budget?
Because they are easier to reduce quickly.
Groceries can increase or decrease depending on how much someone spends each week.
What type of expense is this?
Variable
Christian earns $18/hour and works 6 hours at time and a half.
How much does Christian earn from those 6 hours?
$162
Net income = $2,800
Fixed expenses = $1,900
Variable expenses = $600
Savings = $200
Is this budget balanced? If not, how much is left?
$100 surplus
If 32% of income is already used, what percent remains?
68%
If someone’s income is variable, why is budgeting more challenging?
Fixed expenses like rent, car insurance, and mortgage payments remain the same every month, but variable income can make it hard to ensure there’s enough money to cover these reliably.
A car salesperson earns a percentage of the total value of each vehicle they sell, instead of earning only an hourly wage.
What is this type of income called?
Commission
Mckenna earns $22/hour. She works 40 regular hours and 5 hours at double time.
What is her gross pay?
$1,100
If someone has a $300 monthly deficit, name one fixed and one variable adjustment they could make.
Fixed: Cheaper phone plan, cancel subscriptions
Variable: reduce dining out, entertainment, shopping
A person earns $2,500.
30% housing
20% food
15% transportation
10% savings
How much money is unaccounted for?
Percent used = 75%
Remaining = 25%
25% of 2,500 = $625
Someone reduces variable spending by 10% of a $600 monthly variable budget.
How much do they save?
$60
An amount of money left over after all expenses have been paid for.
Surplus
Vanessa earns $24/hour. This week she worked:
40 regular hours
6 hours at time and a half
4 hours at double time
If deductions are 18%, what is Vanessa’s net income?
$1,121.76
Net income = $3,500
Expenses:
Fixed: $2,200
Variable: $1,050
Savings: 10% of net income
Is the budget balanced? If not, by how much?
Savings = 350
Total expenses = 2,200 + 1,050 + 350 = 3,600
Result: $100 deficit
A person earns $4,000 per month.
Their pie chart shows:
35% housing
20% food
15% transportation
10% savings
8% entertainment
How much money is left for all other expenses?
Total used = 88%
Remaining = 12%
12% of 4,000 = $480
Which type of expense is easier to reduce quickly?
Variable expenses