Budgeting Basics
Define Budget
What is... a plan for managing your income and expenses
Define Credit
What is... the ability to obtain goods or services before payment, with the promise to pay later.
Define 50/30/20 Rule
What is... A budgeting method that divides income into 50% needs, 30% wants, and 20% savings.
Define what being "In Balance" in your budget means.
What is... Income = Expenses
One Key Benefit of maintaining a budget
What is... Prevents overspending and helps achieve financial goals.
Why a budget is important
What is... telling your money where to go, instead of wondering where it went.
Define Revolving Credit
What is... A type of credit that allows you to borrow up to a limit and pay off the balance over time, such as credit cards.
Expenses under the "Need" category in the 50/30/20
What is... Rent, groceries, utilities, transportation, textbooks, and loan repayment.
Define what being "In The Red" means financially.
What is... Expenses > Income
Name one key habit for maintaining good credit.
What is... Use the credit card for needs, not wants.
3 Steps to Being a Budgeting Pro
What is.... Observe, Plan, & Record
Define Installment Credit.
What is... A loan repaid in fixed monthly payments over a set period, like auto loans, student loans, or mortgages.
List different ways you can budget.
Envelope method, banking apps, Money PRO worksheet, 50/30/20 rule
Do this whenever you underestimate your budget and overspend.
What is... Adjust your plan, reassess expenses, and find ways to reduce costs or increase income.
Students should go where for financial help...
What is... The SMMC at the Eagle Student Services Center, 2nd Floor.
Define being "In The Green" in your budget
What is... Income > Expenses
Recommended Maximum Percentage Credit Usage
What is... under 30% of your total credit limit.
What is... helps track spending, set financial goals, and automate savings.
Name one reason why someone might end up overspending.
What is... Unexpected debt payments or special situations.
One important financial habit to develop early
What is... Setting aside money for an emergency fund.
Two ways to improve your budget if your expenses exceed your income.
What is... Increase income and reduce expenses.
Two key tips for maintaining good credit.
What is... Pay off your balance every month and never skip a payment.
Purpose of Money Pro worksheet
What is... helps individuals track and plan their financial goals effectively.
Three financial opportunities you should consider when your budget is in a surplus.
What is... Debt repayment, savings opportunities, and investment opportunities.
One major financial mistake that people often make.
What is... Not tracking expenses and living beyond their means.