Budgeting Basics
What is a fixed expense?
A cost that stays the same each month (e.g. rent or insurance)
What is income?
Money you earn from a job or other source
What is the name of the budgeting strategy that leaves no unassigned money?
Zero-based budgeting
What does ">=" mean in a system of inequalities?
Greater than or equal to
If Sharif wants a restaurant within 4 miles, what inequality would you write?
x ≤ 4
What types of expenses change from month to month?
Variable Expense
Give one example of a variable expense.
Food, Utilities, entertainment
What budgeting method uses physical envelopes to plan spending?
Cash envelope system
How do you know where to shade when graphing "y < x + 3"?
Below the dashed line
Sharon has $8 total and pays $1/mile on a scooter. What inequality models her ride and meal cost?
y + x ≤ 8
What is the largest expense for most American households?
Housing
How much will Sammy earn if he works 140 hours at $22/hour?
y = 22x
y = $3,080
What percent of your income does the 50/30/20 rule recommend for savings?
20%
What type of line do you draw for "y > 2x + 1"?
If Hussain wants to run at least 2 miles, how would you write that?
x ≥ 2
What does the zero-based budget method do with every dollar?
Assigns it a job
What income amount goes to "wants" using 50/30/20 if you earn $6,000/month?
Answer = $1,800
Step 1: Change 30% into a decimal --> 0.3
Step 2: Multiply 0.30 x 6,000
What are examples of fixed expenses?
Rent, insurance, and loan payments
Is (2,1) a solution to the inequality y < 3?
yes
Emily wants to save $400/month without changing fixed expenses. Name two things she could do
Cut variable expenses and work more data entry hours
What is the 50/30/20 rule used for?
Dividing income into needs, wants, and savings.
50% = Needs
30% = Wants
20% = Savings/Debt
What system uses envelopes to manage spending?
Cash Envelope System
What’s one benefit of hourly work?
Overtime/holiday pay or schedule flexibility
What is a solution to a system of inequalities?
A point that makes all inequalities true
Tyrell needs to work enough hours to earn at least $800 this week at $20/hour. Write the inequality to show how many hours Tyrell must work.
20h ≥ 800 or h ≥ 40