Income
The money you earn from a job or other sources.
income
These are costs that do not change each month, like rent or a car payment.
fixed expenses
This is money you set aside for future use instead of spending now
saving
Food, water and a place to live are examples of these
needs
The first step in making a budget is to list all of these
sources of income
This type of income is the amount you receive after taxes and deductions.
net income
Money spent on things like groceries and gas, which can change each month, are called this type of expense
variable expenses
A good reason to save money each month is to be prepared for one of these, like a broken phone or emergency
an unexpected expense or emergency
A new video game or designer shoes are examples of these
wants
After listing income, the next step is making a budget is to list all of these
expenses
If you earn $12 per hour and work 10 hours a week, your weekly GROSS income is this amount.
$120.00
If you spend $250 on groceries, $50 on gas, and $100 on entertainment in one month, your total variable expenses are this amount
$400
If you want to save $600 for a new bike 6 months, you need to save this much each month
$100 per month
This is the term for deciding which needs and wants are most important to you
prioritizing
If your income is $1,000 and your expenses are $900, your budget shows this much left over
$100
This document shows how much you earned and what was taken out for taxes each pay period.
pay stub
If your fixed monthly expenses are $900 and your variable expenses are $300, this is your total monthly expenses
$1200
This is the term for a plan that helps you decide how much to spend and spend and save each month
a budget
If you have $50 and need to buy groceries, and want to go to the movies, which should you buy first
groceries
If your expenses are more than your income, you need to do this to your budget
reduce expenses or increase income
If your monthly net income is $1,500.00 and you save 10%, this is how much you save each month?
$150.00
This is the term for expenses that happen only once in a while, like car repairs or medical bills
occasional or irregular expenses
If you save 20% of your $250 monthly allowance, this is how much you save
$50
This is the process of choosing between two things you want when you can't afford both
making a trade-off or opportunity cost
This is the term for checking your budget each month to make sure you are staying on track
reviewing or tracking your budget