Fixed/Variable Expenses
Is a phone bill a Fixed or Variable Expense?
Fixed Expense
Going out with friends is a...
Want
Jess wants to save for a car in one year, this is a...
Long-term
What is Income?
Money you earn and release
What is the 50 in the 50/30/20 rule?
Needs
Is Groceries a Fixed or Variable Expense?
Variable Expense
Paying for your Monthly Rent is a...
Need
Carl wants to save for a new laptop in a week, this is a...
Short-term savings
Explain Income as a limited
When you have a certain amount of money that you can't go over.
What is the 20 in the 50/30/20 rule?
Savings
What is a Variable Expense?
An expense that can be changed or fluctuated
What is a Need?
Required because it is essential and something important.
What is Short-term savings?
The type of savings that take less time, between days to a couple weeks.
What is a scarce income?
When you don't have enough money to cover all the things you need and want, you have to spend your money wisely.
Buying new shoes when you already have some would be long in what category?
Wants (30%)
What is a Fixed Expense?
An expense that doesn't change, if it does it's once in a while.
What is a Want?
Something you don't need to have or do. A desire to possess or wish for.
Explain why both short-term and long-term are important in a personal budget?
Short-term and long-term goals are both essential in a personal budget to balance immediate financial stability.
Why must income be allocated?
Income must be allocated so your money is organized and covers what matters the most first.
Rent, groceries, utilities, and transportation falls under what category?
Needs(50%)
why must fixed expenses be planned first?
Fixed expenses are required payments that stay the same and must be paid on time.
Why can confusing needs/wants can break a budget?
You might spend money on extras/wants first and not having enough for the important stuff/needs
What is a Long-term savings?
The type of savings that takes more time, between months to a year.
How does income influence budgeting choices?
Income affects budgeting because it decides how much you can spend.
What is the main purpose of the 50/30/20 rule?
To keep a Balanced Budget