Budgeting Basics
A plan for managing your income and expenses
What is a budget?
The ability to obtain goods or services before payment, with the promise to pay later.
What is credit?
A budgeting method that divides income into 50% needs, 30% wants, and 20% savings.
What is the 50/30/20 rule?
Income = Expenses on your budget is called...
What is being "In Balance"?
Money going out or being spent. These could be discretionary (wants) or non-discretionary (needs).
What is an expense?
Money that a person or a business receives in return for working, providing a product or service, or investing capital.
What is income?
A type of credit that allows you to borrow up to a limit and pay off the balance over time, such as credit cards.
What is revolving credit?
This category includes rent, groceries, utilities, transportation, textbooks, and loan repayment.
What is the Needs section of the 50/30/20 rule?
Expenses > Income on your budget is called...
What is... Expenses > Income
What is being "In The Red" financially?
A loan repaid in fixed monthly payments (installments) over a set period of time.
What is installment credit?
Method to Plan, Observe, and Record your expenses and income.
What is the PRO method?
A loan repaid in fixed monthly payments over a set period, like auto loans, student loans, or mortgages.
What is installment credit?
The envelope method, banking apps, the Money PRO worksheet, and the 50/30/20 rule are all....
Adjust your plan, reassess expenses, and find ways to reduce costs or increase income.
What do you do when you underestimate your budget and overspend?
Students can go to ______ for financial help on campus.
What is the SMMC at the Eagle Student Services Center?
Income is greater than expenses.
What is considered "In the Green" in your budget?
Experts recommend you utilize less than this percentage of your total credit limit.
What is the 30% credit limit?
This helps track spending, set financial goals, and prioritize savings.
What are the benefits of budgeting?
Unexpected debt payments or special situations could lead to this budgeting balance...
What is being "In the Red"?
Setting aside money for an emergency fund can help with...
What is one important financial habit to develop early?
Increasing income and reducing expenses helps your budget if it's...
How do you improve your budget if it's "In the Red"?
Pay off your balance every month and never skip a payment.
What are two key tips for maintaining good credit?
This worksheet helps individuals Plan, Record, and Observe finances.
What is the Money PRO worksheet?
Debt repayment, savings opportunities, and investment opportunities are examples of....
What are some things you can do when your budget is in the green?
This financial term refers to the ability of a customer to obtain goods or services before payment, based on the trust that the payment(s) will be made in the future.
What is credit?