Budgeting Methods
Budget method in which you split your income into needs/wants/savings.
50/30/20 Method
Avery spends almost all of each paycheck on restaurants and shopping. Avery wants a simple way to limit categories.
Envelope Method
Saving for a car over the next two years would generally be considered this type of goal.
Mid-term Goal
This type of expense can change from month to month, such as groceries or entertainment.
Variable expense
Reduces the total amount of taxes you owe.
Tax Credit
Budgeting method in which you save first, then use the rest for bills and spending.
Pay Yourself First Method
At the beginning of each month, Laura assigns every dollar of her income to a job/category until she has zero dollars.
Zero Based Budget Method
A goal that you plan to accomplish within a relatively short period, such as a few months, is called this.
Short term goal
Streaming services, designer clothing, and concert tickets are generally examples of these.
Wants
Document that employers use to report an employee's total earnings for the year and the amount of taxes withheld from their paycheck
W-2 form
Budget method in which you divide your physical cash into labeled envelopes for different spending categories
Envelope Method
Carter splits his income into needs, wants, and savings.
50/30/20 Method
In a SMART goal, the "M" stands for this.
Measurable
A plan that shows how much money you expect to earn and spend.
Budget
What type of taxes are used by retired people as income and also for people with disabilities?
Social Security
Budgeting method where you automate your fixed expenses and your savings. You then spend the remaining balance freely without tracking daily purchases.
No-budget Method
Carmen wants to save for a furture car. The first thing she does is save $50 from every paycheck.
Pay Yourself First Method
Saving for retirement is an example of this type of financial goal.
Long-term Goal
“Only 3 left! Buy NOW!” is what type of advertising technique?
Scarcity
Reduces the amount of income that can be taxed. It is subtracted from your total income.
Tax Deduction
Budgeting method where your total income minus total expenses equals zero. Every dollar is assigned a job/catergory.
Zero Based Budget
Priya has stable income, predictable bills and automatic savings. She then spends the rest freely.
No Budget Method
In a SMART goal, the "R" stands for this.
Relevant
Fee charge by a bank when your account balance falls below a certain amount
Minimum Balance Fee
Document that an employee fills out and gives to their employer to determine how much federal income tax to withhold from their paycheck.
W4 form