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50/30/20 Budget
A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment
Gross Pay
Total earnings before any deductions are taken
Fixed Income
Income that remains the same from week to week or month to month
Unit Price
The cost for one item or measurement that allows it to be easily compared to other similar products to evaluate which is a better deal
Zero-Based Budget
A budgeting method where every anticipated earning is assigned a role to be spent, saved, or invested somewhere, so there's no "leftover" money with no purpose
Budget
A plan of your expected income and how you will use it to meet your expected expenses over a period of time
Expenses
Items or services you pay for such as rent, groceries, entertainment, bills, etc.
Income
Money that is received from work, investments, business, etc.
Pay Yourself First
A strategy where you save a specified amount of your paycheck before doing anything with the rest of your money
Residential Lease
A contract between a tenant and a landlord providing the terms and costs for renting the property
Deduction
Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions
Fixed Expense
A cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment)
Low Income
Not having or earning much money
Needs
Expenses that are essential for you to be able to live and function
Public Transportation
Buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.
Emergency Fund
Money set aside for unanticipated expenses or loss of income
Cost of Living
The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another
Surplus
When your income exceeds your expenses and you have money leftover
Deficit
When your expenses exceed your income
Renters Insurance
A form of property insurance, available to renters, that covers losses to their personal property and protects the insured person from liability claims
Cash Envelope Budget
A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories. Spending occurs only from the corresponding envelopes.
Living Wage
The lowest income necessary for a worker to meet their basic needs
Variable Income
Income that varies from week to week or month to month
Down Payment
A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase. The buyer will often take out a loan to finance the remaining balance.
Net Pay
Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay