Income
This is the amount of money you earn from your job before any taxes or deductions are taken out.
What is gross income?
Putting money aside regularly for future use is known by this term.
What is saving?
Food, shelter, and clothing are generally considered to fall under this category of expenses.
What are needs?
This budgeting approach involves allocating specific percentages of your after-tax income to needs, wants, and savings.
What is the 50/30/20 rule?
Looking for these price reductions can help you save money on items you were already planning to buy.
What are sales?
Money received regularly, such as wages, salaries, or investment returns, is generally referred to as this.
What is income?
This type of savings is specifically set aside to cover unexpected expenses like car repairs or medical bills.
What is an emergency fund?
Deciding whether a new smartphone is essential for communication or a luxury item highlights the difference between these two types of expenses.
What are needs and wants?
When creating a budget, making this often means choosing to allocate more money to one category by reducing the amount available in another.
These printed or digital vouchers can be used at checkout to reduce the cost of specific items.
What are coupons?
After federal, state, and other deductions are subtracted from your gross pay, the remaining amount is known as this.
What is Net Pay?
This is the percentage of your total budget dedicated to savings.
What is 20%?
These are goods or services that are not essential for survival or basic functioning but can improve our quality of life or provide enjoyment.
What are wants?
This budgeting principle prioritizes setting aside a portion of your income for savings and financial goals before allocating funds to other expenses.
What is paying yourself first?
Comparing prices using this helps you find the best deal on items of different sizes.
What is unit price?
This is the total amount of money taken out of a paycheck from January 1st to the current date.
What are year-to-date deductions?
A common guideline suggests having enough readily available funds to cover this many months' worth of essential living expenses in your emergency fund.
What is three to six months?
Prioritizing these types of expenses ensures that your essential obligations are met before considering discretionary spending.
What are needs?
Regularly allocating funds for this financial activity helps build a safety net, achieve long-term goals, and provides financial security.
What is saving money?
Before making a purchase, identifying these essential functions or characteristics ensures the item will meet your core needs.
What are must-have features?
For individuals who work in the service industry, their income is affected by the amount they get in these.
What are tips?
This is the bonus a bank gives you for keeping your money in a savings account.
What is interest?
The ability to delay gratification and choose a necessary expense over an immediate desire demonstrates a strong understanding of this financial concept.
What is distinguishing between needs and wants?
When budgeting for expenses for a car, you must consider this cost - one that you might not always need to use, but are required to have.
What is car insurance?
When making purchasing decisions, understanding these involves weighing the benefits of one option against the drawbacks or sacrifices of choosing it over another.
What are tradeoffs?