Vocabulary
a written plan for giving, saving, and spending
Budget
Money flows out in three ways: Giving, Saving, and _________
spending
How does having a monthly budget help you achieve your money goals ?
Answer varies: -When you create your budget at the beginning of the month, you’ll know exactly what you can afford. You’ll tell your money where to go.
money received for work, as a gift, or through investments
Income
income that comes in at different amounts or at different times, or both
Irregular Income
expense that remains the same from month to month
Fixed Expense
The second component of budgeting is ________
giving
Finish the sentence. A budget doesn’t tell you not to spend. A budget actually _____________________
gives you freedom to spend
expense that varies in dollar amount from month to month, but that you can expect to have every month
Variable Expense
Taxes and withholdings impact your_________ which is the amount of money you take home on your paycheck.
net income
expense that occurs at various times throughout the year and tends to be in large, lump sums
Intermittent Expense
A zero-based budget is when your income minus your giving, saving, and spending equals ______
zero
The three priorities in your budget, after listing income, are ?
-saving
-spending
-giving
expense for things you don’t need
Discretionary (Nonessential) Expense
earnings based on a percentage of the sales made
Commission
a cash-flow plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero
Zero-Based Budget
After you make a budget, you need to ______ every expense.
Specific categories are important to consider when creating a budget so you can __________________
break down your income in spending
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net Income
The cost of groceries and gas is considered a(n)
variable expense
the amount you earn before taxes and other payroll deductions
Gross Income
Give your budget ______ months to start working.
three
The envelope system is especially helpful for expenses like ____________________
-food
-gas
-entertainment
-shopping
a record that summarizes all of the income and outgo (spending) over a certain time period
Cash-Flow Statement
To budget with a(n) _________ prioritize expenses from most to least important so your most important expenses are covered first.
irregular income