Budget Basics
Your monthly income is $3,000 and your expenses are $2,700. What is the result?
A $300 surplus
You want to lower your food bill. What is one change you could make to your eating habits?
Cook more meals at home
This document explains the rent, rules, and responsibilities involved in renting an apartment.
Lease agreement
A worker completes short-term jobs for different customers instead of having one traditional employer. What type of work is this?
Gig economy work
This is the amount of your paycheck you actually receive after taxes and other deductions.
Net pay
This budgeting method assigns every dollar of your take-home pay to a specific purpose.
Zero-based budget
A store puts an expensive product directly at eye level. What are they trying to influence?
Your purchasing decision
Name one upfront housing cost a renter may have besides monthly rent.
Security deposit
A freelancer chooses when and where to work. What is this an example of?
Flexibility/freedom
This is your earnings before taxes and other deductions are taken out.
Gross pay
This strategy means moving money into savings before using your paycheck for other expenses.
Pay yourself first
Two products have different package sizes. What calculation helps you determine which is the better deal?
Unit price
Two friends share an apartment instead of living separately. Which major expense could they reduce?
Rent
Unlike many traditional employees, independent workers may have to arrange this benefit themselves.
Health insurance
A person wants the newest phone because everyone else has one. Is this more likely a need or a want?
Want
Name one reason someone should review and adjust their budget regularly.
Income or expenses can change
A $4 box contains 16 ounces. What is the unit price per ounce?
$0.25 per ounce
4.00 / 16 = .25
A person is comparing cities before moving. Name one major financial factor they should research.
Employment opportunities / cost of housing
Why is an emergency fund especially useful for someone whose work comes from different clients?
Their income/work may not be guaranteed
What is one benefit of setting financial goals before creating a budget?
It helps prioritize how you use your money
Someone consistently spends more than they earn. What is one type of spending they could reduce first?
Wants/discretionary spending
Why shouldn't shoppers simply choose the product with the lowest sticker price?
The products may be different sizes/amounts
Someone buys a car and budgets for the loan, gas, and insurance. Name another expense they should expect.
Maintenance or repairs
Name one financial responsibility that an independent contractor generally handles on their own.
Taxes, retirement, or health insurance
A person has a $40,000 salary and wants to build a $12,000 emergency fund. If they save 15% per year, how long will it take?
2 years
40,000 x .15 = 6,000
12,000 / 6,000 = 2