Budgeting Basics
Spending Plan that helps you manage your income and expenses
What is a Budget?
The amount of money you earn before taxes and deductions.
What is Gross Income?
or what is gross pay
What are Needs?
The "S" in SMART goals stands for this
What is Specific?
Money we pay to the government
What are taxes?
This term describes the total value of what you own minus what you owe.
What is Net Worth?
The amount you take home after taxes and deductions.
What is Net Income?
or Net Pay..
Streaming services, eating out, and vacations are examples of this
What are Wants?
A short-term goal usually takes this amount of time or less
What is 1 year?
This tax is collected by the government to pay for national programs like military and national parks
What are Federal taxes?
Expenses that stay the same every month, like rent or car insurance
What are fixed expenses?
The federal tax of Social Security and Medicare are called..
What is FICA taxes?
What is a Variable Expense?
The formula for calculating Net Worth?
What tax is specific to your state and pays for services like public schools, roads, and bridges
What is the NJ State Income Tax?
According to the 50/30/20 rule, this percentage should go to savings, giving, or investing.
What is 20%?
A document that shows your gross income, taxes, and deductions for a pay period.
What is a Pay Stub?
An expense that doesn't happen every month but can be predicted, like back-to-school shopping or buying a year book
What is an Intermittent Expense?
What type of goal might include saving for a car or vacation
A job where you are paid a set amount per year instead of hourly
What is a salary job?
What is the "Golden Rule" of Budgeting
What is Live on Less Than You Make?
This form tells your employer how much federal income tax to withhold
What is a W-4 form?
A cost such as a car repair or medical bill?
What is an Unexpected expense?
The very first step in creating a financial plan
What is calculating your Net Worth?
Two ways you can earn money without working
What are interest and investments?