Budget Basics
What is the main purpose of creating a budget?
To plan how to spend, save, and manage money.
What is the difference between an hourly wage and a salary?
Hourly pay is based on hours worked; a salary is a set amount of pay over a period of time.
True or False: Pay Yourself First means you prioritize saving before spending on other expenses.
True
What is the monthly payment a renter pays to live in an apartment?
Rent
What should you compare when deciding which package of a product is the better deal?
Unit price
Is buying groceries a need or a want?
Need
What is overtime pay?
Additional pay for eligible hours worked beyond the standard overtime threshold.
What categories make up the 50/30/20 method?
50% needs, 30% wants, and 20% savings and debt
True or False: Rent is the only housing expense you should plan for.
False
Name one way to save money when grocery shopping.
Use coupons, compare unit prices, plan meals, or buy store brands.
Is buying a new video game a need or a want?
Want
Is monthly rent usually a fixed or variable expense?
Fixed expense
Which budgeting strategy involves saving money before paying other expenses?
Pay Yourself First
Name one utility expense a renter may pay.
Name one utility expense a renter may pay.
True or False: Entertainment is generally one of the three largest household spending categories in the United States.
False
True or False: A budget can help you reach financial goals.
True
Is the amount you spend on gasoline each month usually fixed or variable?
Variable expense
Which budgeting strategy uses physical cash in separate envelopes for different spending categories?
Cash Envelope Budget
Name two expenses of owning a car besides the monthly car payment.
Insurance, gas, maintenance, repairs, registration, or parking
Your electricity is what type of expense, and why?
Variable expense, because the amount can change.
Jordan earns $2,400 per month. Jordan spends $1,200 on needs, $600 on wants, and saves $300. How much money is left unaccounted for?
$300
You earn $3,200 gross per month, and $500 is deducted. What is your net pay?
$2,700
Which strategy assigns every dollar of income a purpose?
Zero-Based Budget
What is money paid upfront toward the purchase of a home or vehicle called?
Down payment
You overspend on eating out every month. Name two changes you could make to your budget.
Set a restaurant spending limit, cook at home, track purchases, or reduce another discretionary expense.