Guided Notes
A budget is a ______ for your money.
plan
Money flows 2 ways, ______ & _______.
In,Out
a written plan for giving, saving, and spending
Budget
How often should you create a budget?
Monthly
When my income minus my expenses (giving, saving, and spending) equals zero it's called _________.
zero based budget
Money flows out through giving, saving, and________.
spending
Your ______ is any money you earn or receive as a gift.
income
the amount you earn before taxes and other payroll deductions
Gross Income
The three priorities in your budget after listing income are __________, _________ & __________ .
giving,saving,spending
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net Income
The first component of a budget is
income
___ % of Americans say that it is important to budget, but only ____% actually do it.
95,35
expense that remains the same from month to month
Fixed expense
What’s it called when you make money on the percentage of the total sales you make?
Comissions
expense that varies in dollar amount from month to month but that you can expect to have every month.
Variable expense
The best kind of budget is a _______ budget.
zero-based
Maturity is the ability to delay _________.
gratification
a record that summarizes all of the income and outgo (spending) over a certain time period
cash-flow statement
The envelope system is especially helpful for expenses like _______, _______, _______ & ________ .
food,gas,entertainment & shopping
What are the for walls?
shelter, utilities, transportation, and food.
Keeping track of your expenses will help you ______ your budget.
adjust
The average American household spends more than ___ of their annual income.
90%
income that comes in at different amounts or at different times, or both
Irregular Income
Going to the movies is an example of what two types of expenses?
Discretionary and Variable
expense for things you don’t need
Discretionary (Nonessential) Expense