Budget Basics
This is a plan for how you will spend and save your money.
What is a budget?
Food, housing, and transportation are usually examples of this.
What are needs?
This budget splits money into needs, wants, and savings.
What is the 50/30/20 budget?
This is the legal agreement you sign when renting an apartment.
What is a residential lease?
This card takes money directly from your checking account.
What is a debit card?
Money before taxes is taken out.
What is gross pay?
Concert tickets, games, and eating out are usually examples of this.
What are wants?
This strategy means saving money before spending on anything else.
What is pay yourself first?
This is often the biggest expense for most people/households.
What is housing?
This card lets you borrow money and pay it back later.
What is a credit card?
Your take-home pay after taxes and deductions.
What is net pay?
This type of expense stays about the same every month, like rent.
What is a fixed expense?
This budget makes sure every dollar has a job.
What is zero-based budgeting?
This compares price by ounce, pound, or item to find the better deal.
What is unit price?
This is the highest amount you can charge on a credit card.
What is a credit limit?
If you spend more than you earn, your budget has this.
What is a deficit?
This type of expense changes month to month, like gas or groceries.
What is a variable expense?
This budget uses cash set aside for different spending categories.
What is the cash envelope budget?
Buses, trains, and subways are examples of this.
What is public transportation?
This is the smallest amount you can pay to keep your credit card in good standing.
What is the minimum payment?
If you spend less than you earn, your budget has this.
What is a surplus?
Electricity, water, heating, and internet are examples of this housing cost.
What are utilities?
This helps you notice where your money is actually going.
What is tracking your spending?
Rent, utilities, security deposit, and renter’s insurance are all examples of this.
What are housing costs?
This box shows a credit card’s fees, APR, and important terms.
What is a Schumer Box?