Budgeting
Identify the type of cost that remains constant each month, regardless of usage, such as rent or mortgage payments.
What are fixed costs?
What term refers to the time spent engaging in activities that are enjoyable and relaxing, as opposed to work or study?
What is leisure time?
What are the consequences of not sticking to a budget?
What are overspending, increased debt, and financial stress?
What is the term for expenses that can fluctuate each month, like dining out or shopping?
What are variable costs?
What are some strategies or methods you can use to track your budget ?
Answers may vary
How can using budgeting apps and tools benefit an individual?
What is they help track expenses, set goals, and visualize spending patterns for better financial decisions?
What financial strategy involves allocating a portion of your income for future use or unexpected expenses?
What is saving?
Define the financial situation where your ability to spend is restricted due to limited resources.
What are limited means?
How does understanding opportunity cost help individuals make better financial decisions?
It allows individuals to weigh the benefits of one choice against the potential benefits of an alternative choice, leading to more informed spending decisions.
Imagine you have to reduce your monthly expenses by 25% without compromising important goals. How would you go about it? What changes would you make to your daily schedule to maximize productivity?"
Answers may vary
In financial terms, what describes the total earnings before taxes and other deductions are applied?
What is gross income?
What term is used to describe a situation where individuals have no constraints on their financial resources and can spend as they wish?
What are unlimited means?
What is the difference between a gross income and net income?
Gross income is the total earnings before deductions, while net income is what remains after taxes and other deductions are taken out.
In creating a personal budget, what two main components must be balanced to ensure financial stability, and how does each component impact decision-making?
What are income and expenses? Balancing them ensures that spending does not exceed earnings, which helps in planning for savings and future expenses.
How does understanding opportunity cost help individuals make better financial decisions?
How does understanding opportunity cost help individuals make better financial decisions?
What is the calculation that results in the amount of money left after all necessary expenses have been deducted from total income?
What is net income?
What is the purpose of creating a budget in personal finance management?
What is to track income and expenses, helping to ensure that spending does not exceed earnings?
How can individuals effectively reduce their variable costs?
What is by reviewing and cutting discretionary spending, such as entertainment or dining out?