Budgeting Basics
This is a plan that shows how much money you earn and how you plan to spend it.
What is a budget?
This three-digit number helps lenders determine how risky it may be to lend you money.
What is a credit score?
Money you set aside instead of spending is called this.
What are savings?
This is the amount of money you earn before taxes and other deductions are taken out.
What is gross pay?
Money a business earns from selling products or services before expenses are subtracted is called this.
What is revenue?
Rent, car payments, and insurance are examples of this type of expense that usually stays the same each month.
What are fixed expenses?
Paying your credit card bill by this date helps you avoid late fees and protects your payment history.
What is the due date?
This is money saved specifically for unexpected expenses like car repairs or losing a job.
What is an emergency fund?
This is the money you actually receive after taxes and deductions.
What is net pay?
The money remaining after business expenses are subtracted from revenue is called this.
What is profit?
Eating out, entertainment, and shopping are examples of this type of expense that can change each month.
What are variable expenses?
This term describes the percentage of your available credit that you're currently using.
What is credit utilization?
This is when you earn money on both your original investment and the interest it has already earned.
What is compound interest?
This federal program funded through payroll taxes provides retirement and other benefits to eligible workers and families.
What is Social Security?
Before starting a business, you should identify this group of people most likely to purchase your product or service.
What is your target market?
You make $2,000 this month and spend $1,650. How much money do you have left?
What is $350?
True or False: Checking your own credit score normally lowers your credit score.
What is false?
Stocks, bonds, mutual funds, and ETFs are examples of ways people can do this with their money.
What is invest?
This form employees typically complete when starting a job so their employer knows how much federal income tax to withhold.
What is a W-4?
This document explains a business's goals, target customers, operations, and financial strategy.
What is a business plan?
This popular budgeting method divides your income into 50% needs, 30% wants, and 20% savings/debt repayment.
What is the 50/30/20 rule?
If your credit card limit is $1,000 and your balance is $250, what is your credit utilization?
What is 25%?
This strategy reduces investment risk by spreading your money among different types of investments.
What is diversification?
A person who works independently rather than as a traditional employee may need to pay this additional type of Social Security and Medicare tax.
What is self-employment tax?
If your business earns $2,500 in revenue but has $1,700 in expenses, how much profit did you make?
What is $800?