Budget Basics
This is a plan for managing your income and expenses.
What is a budget?
Food belongs to this category of spending.
What are needs?
Putting money aside for future use is called this.
What is saving?
Comparing prices before making a purchase is called this.
What is price comparison?
This type of card allows you to borrow money to pay for things.
What is a credit card?
This is one reason budgeting is important, helping you avoid overspending or save for goals.
What is to reduce stress, save money, or meet financial goals?
A Netflix subscription is an example of this type of spending.
What are wants?
It’s a good idea to have this type of fund for unexpected expenses.
What is an emergency fund?
Avoiding this type of buying can help you stick to your budget.
What is impulse buying?
Missing a payment on your credit card affects this three-digit number.
What is your credit score?
This term refers to the money you earn after taxes are taken out.
What is net income?
Shelter and transportation are two examples of this type of expense.
What are needs?
Using coupons, buying in bulk, and shopping sales are ways to save money on these.
What are groceries?
This is the term for a document showing what you bought and how much you paid.
What is a receipt?
This is the term for the extra money you pay to borrow money.
What is interest?
This is the first step in creating a budget.
What is listing your income and expenses?
Dining out and designer clothes are two examples of this type of expense.
What are wants?
This savings strategy involves putting aside money as soon as you get paid.
What is "pay yourself first"?
You should always check this before making a big purchase to ensure you have enough money.
What is your bank account balance?
Paying your balance in full each month is one way to avoid this.
What is credit card debt?
A budget can include money for fun activities.
What is "True"?
This percentage of your income is often recommended for "needs" in the 50/30/20 rule.
What is 50%?
A fully funded emergency fund should cover this many months of living expenses.
What is 3-6 months?
Spending less than you earn is called this.
What is living below your means?
This is what APR stands for, an important factor to consider when choosing a credit card.
What is Annual Percentage Rate?