Personal Finance 101
For a student, this is $500 put aside for large, unexpected expenses. For an adult, this is 3-6 months of his/her income.
What is an Emergency Fund?
Expenses that stay the same month after month.
What are Fixed Expenses?
This is a plan that will be reached in the future.
What is a goal
This expense should make up 25-35% of your income
What is Housing (Rent/Mortage)
A list of planned expenses and income.
What is a Budget?
What is one of the goal-setting guidelines?
What is realistic, specific, time frame, state the action to be taken
Expenses that you need in order to live
What are essential expenses
This is a term for a reason to save in a case something bad happens.
What is an emergency fund?
Telephone, Electric, Gas, Cable/Internet should make up what percentage of income
What is 8-10%
The amount of money that an individual or business earns.
What is Income?
An item that is bought without previous planning or consideration of long term effects.
What is an Impulse Purchase?
Eating out, going to the movies, or going to a concert
What are nonessential expenses
This an example of a reason you would need an emergency fund.
What is fire, car accident, medical emergency, job loss, moving, etc?
The average amount saved per month by cooking at home
What is $50-$100 (per month)
Item(s) you pay for each month
What is Expense?
This is a series of envelopes that are divided into categories and are used to store cash for planned monthly expenses.
What is an Envelope System?
Mortgage/rent, Insurance–auto& home, taxes
What is Essential – Fixed - Expenses
This is an example of a long term goal you would have for saving money.
What is a home, saving for retirement, paying off the car, etc?
This should be 5-10% of your monthly income
What is Transportation
Income that is not used... money set aside for future use.
What is Savings?
True or False: Budgeting with an Irregular Income is no different than budgeting with a regular income.
What is False?
Disney +, Hulu, Netflix, Monthly Makeup Subscriptions
What is Nonessential - Fixed- Expenses
This is the percentage of you income the experts say you should save.
What is the 10%.
You should save your tax return or at least __________
What is 50%
Payments that change every month
What are variable expenses?