True or False
One of the budgeting methods we discussed was envelope budgeting.
A ______ is a plan that outlines your income and expenses over a specific period, helping you manage your money.
What is a budget?
Non-essential items that enhance life but aren't necessary for it.
What are wants?
Budgeting helps with:
a. Reaching goals
b. Preparing for emergencies
c. Controls spending
d. All of the above
What is all of the above?
Your budget will stay the same for a lifetime
False
_______ is money that is earned or received through work or investments on a regular basis
What is income?
Money set aside for future use.
What are savings?
What is commonly considered a flexible or variable expense?
1. Rent
2. Mortgage payment
3. Phone bill
4. Entertainment
What is entertainment?
The "Pay Yourself First" method is good for those with big financial goals.
True
_____ are essential expenses necessary for survival.
What are needs?
Formula that can help you determine how to budget and save your money
What is the 50/30/20 Rule?
An example of a long-term financial goal would be:
1. An annual vacation
2. Saving for retirement
3. Getting concert tickets for next month
4. Completing college within the next six months.
What is saving for retirement?
_______ is where every dollar of your income is assigned to a specific purpose.
What is Zero-Based Budgeting?
The money you take home after deductions like taxes.
What is net income?
What takes up the 20% in the 50/30/20 method?
a. Needs
b. Savings
c. Debt repayments
d. Both B & C
What is B & C, savings and debt repayment?
______ is the first step when crafting a budget.
What is reviewing your income?
Used to help offset unexpected costs/emergencies
What is a rainy-day fund?
An example of a fixed expense is:_____
1. Clothing.
2. Auto insurance.
3. An electric bill
4. Educational expenses.
What is auto insurance?