Budget Basics
This is the money you get for working
Food, water and shelter are examples of this kind of expense
Needs
This is the money you set aside for emergencies or future goals
Savings
This is when you try to find the best price for something before you buy it
Comparison shopping
This occurs when you spend more money than you earn, leading to debt.
Overspending
The money you have to pay every month for things like rent or phone bills is called this
Fixed Expenses
Wants
This is money you borrow and have to pay back with interest
Credit
If you avoid buying things you don’t need or can live without, you’re practicing this important spending habit.
"restraint" or "self-control"
This simple budgeting method divides your money into three categories: needs, wants, and savings
"50/30/20 rule"
This word means making a plan for how you will spend your money
Budgeting
This is something you must have in order to live and function properly, like clothes or a place to live.
Needs
This is what happens when you spend less money than you make
Living within your means
This is the term for buying things that you don't need or haven't planned for, usually in the moment.
Impulse Buy
This is the total amount of money you receive from work or other sources, before any deductions.
Gross Income
This is when you have more expenses than income
Deficit
This is a type of expense for things you enjoy but don't necessarily have to have, like going to the movies or eating out at a restaurant
Wants
This type of savings account is designed to cover unexpected costs, such as car repairs or medical bills.
Emergancy Fund
This type of shopping is done after you make a list of the items you need, which helps you avoid unnecessary purchases.
Shopping with a list
This type of loan involves borrowing money to buy a home, and the property is used as collateral.
Mortgage
This is the amount of money left after you subtract your expenses from your income
A basic necessity for working or attending school that allows you to travel to your job or education is considered this.
"transportation" (a "need")
When you borrow money and agree to pay it back over time, this is called
Debt
When you save money by sharing expenses with friends, like splitting the cost of a ride or meal, this is called.
Sharing Costs
This is money you receive from investments or assets, not from working a job.
Unearned Income