Terms
Income remaining after all employer withholdings, including taxes
Disposable income
A surplus on your cash-flow statement indicates that you are:
Spending less than you earn
Rent and Auto insurance payments are examples
Fixed Expenses
In order to be financially successful, you must
Identify financial values and goals
What is my favorite color?
Black like my soul
Financial planning involves 3 categories
Spending
Risk management
Capital accumulation
Assets, liabilities, and net worth are included
Balance Sheet
An emergency fund should contain ________ of living expenses
3-6 months
What are the three main categories of the 50/30/20 budget rule?
Needs, Wants, Savings
What is my dream job?
Professional Napper
Total income minus total expenses is the formula for calculating
surplus or deficit
summary of all income and expense transactions over a specific time period
Cash Flow Statement
What is the primary purpose of an emergency fund?
To cover unexpected expenses.
If someone earns $4,000 per month after taxes, how much should they allocate toward wants using the 50/30/20 rule? (formula: 4000 x wants percentage)
$1,200
Dream vacation spot.
Anywhere away from students, preferably a beach.
Net Worth is calculated by taking
Assests - liabilities
Riley earns $4,500 each month. A total of $945 is taken out for taxes and $210 is taken out for insurance. What is Riley’s disposable income?
$3,345
This should be updated once a year.
Balance Sheet
Which of the following is considered a liability (debt) on a balance sheet?
Savings Account
Car
Student Loan
Laptop
Student Loan
What are my kids' names?
Alexis (Lexy, Lex)
Ethan (Ethan)
Isabella (Izzy, Iz)
The difference between the budgeted and the actual is called
Budget Variance
Child support received, Social Security benefits, and spousal support are all examples of
Income
Sarah has a monthly budget, but an unexpected medical expense comes up. What is the best thing she can do to handle this?
Review her budget and reduce spending in other areas to cover the expense
A family has spent more than planned in several budget categories for three months in a row. What is the first step they should take?
Review their budget to see where they are overspending
How long have I been teaching?
8 years.