Budget Basics
This is a plan for how you will spend and save your money.
What is a budget?
Money earned from a job is called this.
What is income?
This budgeting strategy involves tracking where every dollar goes.
What is expense tracking?
Money set aside for housing belongs in this category.
What is housing?
The first step in creating a budget is identifying this.
What is income?
Money left over after expenses are paid is called this.
What is savings?
Rent and utilities are examples of this type of expense.
What are fixed expenses?
This strategy means saving money before spending it.
What is paying yourself first?
Gas and bus passes fit under this category.
What is transportation?
After finding income, you should list these.
What are expenses?
This is the difference between income and expenses.
What is a balance?
Money spent on goods and services is called this.
What are expenses?
This budgeting rule often divides income into needs, wants, and savings percentages.
What is the 50/30/20 rule?
Groceries belong in this category.
What is food?
This helps people keep in track of spending habits.
What is tracking expenses?
A budget helps people avoid spending more than this amount.
What is their income?
Food and entertainment are examples of this type of expense.
What are variable expenses?
Reducing unnecessary spending is an example of this.
What is cutting costs?
Money used for movies and hobbies belongs here.
What is entertainment?
A good budget should include this for future goals.
What is savings?
The main purpose of a budget is to manage this.
What is money?
income minus expenses equals this.
What is net income?
Comparing planned spending to actual spending is called this.
What is budget monitoring?
Money set aside for unexpected costs belongs here.
What is an emergency fund?
Budgets should be reviewed and changed based on this.
What are financial changes or needs?