Budget Basics
What is an example of a fixed expense?
Rent, subscription, medical insurance, etc.
Name a variable expense.
Dining out, utilities, gas, etc.
What budgeting method allocates every dollar to a category?
Zero-based budgeting.
What formula adds cells B2 through B11 in Excel?
=SUM(B2:B11).
What does the solution set of a system of inequalities represent?
All points that satisfy every inequality in the system. THE SHADED OVERLAP AREA
Which expense is usually the largest for U.S. households?
Housing cost is largest expense.
Why are fixed expenses harder to change than variable expenses?
They are contractual or recurring obligations (e.g., rent, insurance). i.e. there's not much you CAN do to change them
What is the main purpose of the cash envelope system?
To control discretionary spending by using cash for specific categories.
If cell C4 = 15 and D4 = 22.5, what does =C4*D4 return?
337.5.
Graph y ≤ 2x + 3 and y > -x + 1. Which quadrant contains most solutions?
Quadrant I.
A household is considered housing-burdened if housing costs exceed what % of income?
30%
Which of these is a variable expense: rent, car insurance, dining out, or internet?
Dining out
If income is inconsistent, what’s the best budgeting advice?
Save more during high-income months and prioritize needs.
Write a formula to calculate 8% tax on $2,500 in cell B3.
=2500*0.08.
If x = hours tutoring ($25/hr) and y = hours babysitting ($15/hr), write an inequality for earning at least $500.
25x + 15y ≥ 500.
If someone earns $5,000/month and uses the 50/30/20 rule, how much goes to savings?
$1,000
If rent is $1,200 and utilities average $180, what % of a $3,000 income is fixed expenses?
46%
Compare the 50/30/20 method to zero-based budgeting.
50/30/20 uses percentages for needs/wants/savings; zero-based assigns every dollar a job.
If Jamari works 150, 160, and 170 hours for the past 3 months at $20/hr, what’s his average monthly income?
$3200
A restaurant must be ≤ 3 miles away (d) and cost ≤ $10 (p). Write the system of inequalities.
d ≤ 3 and p ≤ 10.
If groceries cost $320 and entertainment $150, what % of a $2,500 income is spent on these combined?
18.8%
Explain why budgeting for variable expenses is important even if they fluctuate.
It helps prevent overspending and ensures money is available for essentials.
Give one advantage and one disadvantage of hourly work vs. salaried work.
Advantage: Overtime pay for hourly; Disadvantage: Income can be inconsistent for hourly.
This is just 1 example btw
Explain why rounding is important in budgeting spreadsheets.
It prevents small discrepancies from adding up and simplifies planning.
Given y < (1/2)x + 4 and y ≥ -x + 2, name one solution point.
(4,3), (2,0), (2,2) ... there are SEVERAL