Budgets
The common name for money plans
What is a Budget?
This is the money a person earns from working a job, usually paid weekly, bi‑weekly, or monthly.
What is a salary/wage?
This is the money you use to buy goods and services, like food, clothes, or entertainment.
What is spending?
This is the amount of money currently available in your bank account.
What is account balance?
A number that gives your credit on a scale and the higher the number the better the score.
What is a credit score?
2 common categories of expenses in budgets
What are fixed and variable expenses?
This type of income comes from owning something—like a house or land—and charging others to use it.
What is rental income?
This is the written or digital record people use to track how much they plan to spend in different categories.
What is a budget?
This is the plastic card linked to your bank account that lets you buy things or withdraw cash from an ATM.
What is a debit card?
This is the maximum amount of money a lender allows you to borrow on a credit card.
What is a credit limit?
A budget can help you set ___ type of goals.
What are SMART goals
This is the amount of money you take home after taxes and deductions are removed from your paycheck.
What is net income?
This type of spending covers things you must pay for every month, such as rent, groceries, or transportation.
What is essential spending?
This account helps your money grow over time because the bank pays you interest for keeping it there.
What is a savings account?
This type of card lets you borrow money from a bank to make purchases, as long as you pay it back later.
What is a Credit Card?
A goal over a long period of time
What is a long-term goal?
This is the total amount of money you earn before any taxes or deductions are taken out.
What is gross income?
This happens when you spend more money than you actually have, often by using credit or borrowing.
What is overspending?
This type of bank account is used for everyday spending and lets you write checks or use a debit card.
What is a checking account?
This is the extra money you must pay when you borrow money, often shown as a percentage.
What is interest?
This budgeting term describes the money you must spend each month on essentials like rent, food, and transportation before you can use any for fun or savings.
What are fixed expenses?
This type of income is earned when you sell something for more than you paid for it, like a collectible or stock.
What is profit/capital gain?
This kind of spending happens when you buy something you want but don’t necessarily need, like a new video game or fancy shoes.
What are discretionary/non-essential expenses?
This is the official way of knowing your account is backed.
What is FDIC insured?
This term describes how much of your available credit you are currently using, and keeping it low helps improve your credit score.
What is credit utilization?