Vocab
$$ Management
Steps For Budgeting
Bag-oh-Money
Money, Money, $$$
100
a roadmap for using money
What is a budget.
100
process of planning how to get the most from your money is called this.
What is money management.
100

this is the first step when creating a budget

What is setting goals.

100
it is recommended to save at least 8 months worth of pay in this type of account.
What is an emergency fund.
100

the equation for calculating annual pay if your job posting only provides an hourly rate.

rate ($20) x 8 (hours) x 5 (days) x 52 (weeks).

200
allowance, wages, tips and interest earned on savings are this type of money.
What is income.
200
What do I want to accomplish in the next month? The next year? and What is important to me? are all good questions when doing this.
What is setting goals.
200
in this step of planning a budget, you take your goals into consideration when determining how much to set aside for emergencies
What is planning for savings (Step 4).
200
deductions from paychecks are known as these.
What is withholding.
200
being paid weekly, biweekly, monthly or semimontly in a lump sum for hours worked is known as this.
What is a salary.
300
earnings after deductions are known as this
What is net pay
300
This important step in the budgeting process is knowing how much money you have available at a given time.
What is estimating income.
300
during these two steps of preparing a budget, you must know how much money you have to spend and how much you will be spending.
What is estimating income and expenses. (Step 2 & 3).
300
Donna works at Sears selling electronics. She is paid based on the amount of sales she has per month, or this.
What is commission.
300

not every state has this, but California's is is over 7%.

What is the state tax rate.

400

the term used to describe what's available to use to spend on necessities & the term used to describe what's left over after necessities are paid for.

What are discretionary and non-discretionary funds?

400
when planning a budget, you need to plan for expenditures that may rise in cost, or these types of expenses.
What are variable expenses.
400
during this step of preparing the budget, you should compare your monthly budget amounts with your actual expenses and make changes.
What is adjusting and balancing the budget. (Step 5).
400

probably the biggest monthly expense

What is mortgage/rent.

400
these are used to help calculate federal income tax amounts. single people claim one, but you can claim these for your children and spouse.
What are allowances.
500
another term for expenses
What is expenditures
500
when estimating expenses, you must take in these two factors.
What are fixed expenses and variable expenses.
500
bill gates may recommend use of this device for creating and maintaining your budget.
What is using a computer for budgeting.
500

$8.50 per hour regular pay, equals this amount for time and a half

What is $12.75.

500
these two types of taxes are withheld from everyone's pay to help with retirement benefits and medical expenses. one rate is 6.2% and the other is 1.45%.
What is social security and medicare.
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