Budgeting Basics
This is another name for a budget, often described as a roadmap for your cash.
What is a Spending Plan?
This percentage of your take-home pay is for your Needs.
What is 50%?
A monthly phone bill is considered one of these.
What is a Need?
This is the total amount you earn before any taxes or deductions are taken out.
What is Gross Pay?
The first step to knowing where your money goes is to do this for every single purchase.
What is Track Your Spending?
This is the total money you have coming in from any source, like a job, family, or benefits.
What is Income?
Preparing for an emergency fund or a future goal fall into this category of the 50/30/20 rule.
What is Savings (and Goals)?
Buying a new video game is considered one of these.
What is a Want?
This is the actual amount of money that gets deposited into your bank account; the money you have to budget with.
What is Net Pay (or Take-Home Pay)?
The main benefit of tracking your spending is to build this, so you're not surprised where your money went.
What is Awareness?
The main reason you create a spending plan is to make sure your money lasts and you can afford these two types of things.
What are things that are important to you (or Needs) and things you enjoy (or Wants)?
If your monthly take-home pay is $500, this is how much money you should allocate for your "Wants" according to the rule.
What is $150? ($500 x 0.30)
Groceries for home are a Need, but eating at a restaurant is one of these.
What is a Want?
Federal Tax, Social Security, and Medicare are all examples of these, which are taken out of your gross pay.
What are Deductions?
If you spend too much on "Wants" one week, you should do this with your plan for the following week.
What is spend less in that category (or adjust it)?
This strategy involves breaking your monthly plan into smaller chunks based on when you get paid.
What is a Two-Week Plan?
A phone bill and groceries are examples of expenses in this 50/30/20 category.
What are Needs?
This type of expense costs the same every time, like a Netflix subscription or bus pass.
What is a Fixed Expense?
In a previous class, this U.S. state was highlighted as having no state income tax, meaning more take-home pay.
What is Florida (FL)?
The term for money you set aside for future goals or unexpected costs.
What is Savings?
A budget isn't about restriction, but about making choices that make you happy now and _____.
What is "later"?
According to the "Essential College Budget Guide," the 50/20/30 rule allocates 20% of your income to these two specific things.
What are Savings and Debt?
This type of expense changes in amount each time, like money spent on snacks or entertainment.
What is a Variable Expense?
If your job pays you $12 per hour and you work 10 hours, your gross pay is $120. Why is it important to know that you will NOT have the full $120 to put in your budget?
What is because taxes and other deductions will be taken out, leaving you with a smaller net (or take-home) pay?
What is one main reason you should record even small purchases like a $2 coffee?
What is because small purchases add up and can account for significant spending over time?