Budget Basics
The financial tool that helps track income and expenses to ensure responsible spending
What is a budget?
Regular earnings from employment
What is salary and wages?
This type of expense stays the same each month
What is a fixed expense?
At least 20% if possible
What is the percentage of income recommended for savings?
The S in SMART Goals stands for
What is Specific
Income & Expenses
What are the two main parts of a budget?
Money earned from contract or gig work
What is a freelance income?
This budgeting method involves dividing cash into labeled categories to control spending and avoid overspending
What is the envelope method?
It helps cover unexpected expenses like medical bills or car repairs
What is an emergency fund?
The M in SMART goals stands for
What is Measurable
Tracking expenses and income
What is the first step in creating a budget?
Financial support from family or other sources
What are allowances?
The budgeting method that assigns every dollar of income to a specific expense or savings category
What is zero-based budgeting?
To set aside a small amount regularly and automate savings
What is the best way to build an emergency fund?
The A in SMART Goals stands for
What is Achievable
Purchasing something without planning or considering the budget
What is impulse buying?
Earnings from part-time jobs or entrepreneurial ventures
What are side hustles?
This budgeting method prioritizes savings first, allocating money toward financial goals before covering expenses
What is reverse budgeting?
The best way to ensure you consistently save money without forgetting or skipping months
What is to automate savings?
The R in SMART Goals stands for
What is Relevant
The financial strategy that encourages consumers to compare prices, consider quality, and evaluate long-term value before making a purchase
What is mindful spending?
Returns from stocks, bonds, dividends, or rental properties
What are investments?
This budgeting method helps you allocate your income into three categories: needs, wants, and savings
What is the 50/30/20 rule?
The financial strategy that involves setting aside money in a separate account specifically for future large purchases, such as a car or vacation
What is a sinking fund?
The T in SMART Goals stands for
What is Time-bound