Budgeting Basics
A financial plan that helps you save money and avoid debt.
a budget?
Money coming in or money earned from work or investments.
What is income?
Automatically saving a portion of your income for future use.
What is pay yourself first (PYF)?
Financial institutions that are owned by investors and operate to make a profit.
What are banks?
An account that allows quick withdrawals using checks or debit cards.
What is a checking account?
Resisting the temptation of an immediate reward in order to receive a better reward later.
delayed gratification?
Total pay after deductions and the number you should base your budget on.
What is net pay?
: An unplanned purchase made right before buying, like grabbing candy at a checkout line.
What is an impulse buy?
Clue: Financial institutions owned by members that operate as non-profits.
What are credit unions?
An interest-bearing account where people store money for future use.
What is a savings account?
A period when the average price of goods like food, clothing, and cars increases.
What is inflation?
Expenses that stay the same amount each month, such as rent or a car payment.
What are fixed expenses?
Clue: Money that is left after paying bills and can be used for fun activities.
What is discretionary income?
Government insurance that protects deposits in banks.
What is the FDIC?
A financial product that offers a guaranteed interest rate if money stays deposited for a set period of time.
What is a certificate of deposit (CD)?
A period when average prices decrease, such as when the cost of gas drops.
What is deflation?
Expenses that change regularly, like groceries, gas, or entertainment.
What are variable expenses?
The first step when building a budget is starting with this type of pay.
What is net pay?
Government insurance that protects deposits in credit unions.
What is the NCUA?
A plastic card that withdraws money directly from your checking account when you make a purchase.
Correct Response: What is a debit card?
This happens when you spend more money than you earn.
What is accumulating debt?
Products that make people happier but are not necessary for survival.
Wants
In the correct order of budgeting, after paying yourself first you should pay these next.
What are necessary bills?
A secure box in a bank vault used to store valuable items.
What is a safe deposit box?
A four-digit number used to authorize debit card transactions
What is a PIN?