Terminology
This might come from several sources such as Financial Aid, child support, employment, pension etc.
What is income?
Items in your budget that have to be paid monthly.
What is a need?
The 20/4/10 rule is a guideline for buying these.
What are cars or vehicles?
To determine your net worth, you subtract these from your assets.
What are liabilities?
When creating a budget, these are two types of expenses you must categorize.
What are fixed and variable expenses?
What type of expenses are the same each month, such as rent/mortgage and car payments.
What are fixed expenses?
This type of budgeting philosophy focuses on giving every dollar a specific purpose.
What is the zero-based budgeting philosophy?
What does the 50/30/20 rule suggest dividing your budget into these three categories.
What are needs, wants, and savings?
This financial term describes the difference between your income and expenses.
What is a surplus or deficit?
This is the money you set aside for your years after work.
What is your retirement fund?
Term used for monthly expenses, (not fixed) such as transportation, groceries, and utilities?
What are Variable expenses?
This system is a budgeting method that uses the method of placing cash in specific categories each pay period.
What is envelope system?
Financial advisors often recommend saving at least this percentage of your income.
What is 20%?
When you spend less than budgeted in one category, this budgeting term is used.
What is a budget surplus?
This is the term for a budget created for an entire year and not just month - to - month
What is an annual budget?
Terminology used for expenses that are not fixed or variable, that occur infrequently.
property taxes, license plate registration
What are Periodic expenses?
This budgeting technique focuses on paying off the smallest debts first, regardless of interest rates.
What is the debt snowball method?
This rule is a strategy to avoid impulsive purchases by waiting this amount of time before buying.
What is the 30 day rule?
This term refers to money set aside for these unexpected situations.
What are emergencies?
This way of paying of debt is a reduction strategy where you pay off debt in order of smallest to largest, gaining momentum as you knock out each remaining balance. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment.
What is Snowball or avalanche method?
This term represents detailed income and expenses. (money in verses money out)
What is a budget?
This financial tool helps you visualize your budget and track expenses.
What is a budgeting app or software?
When working on your budget, this is the time frame to go back and review previous spending.
What is 3 - 6 months?
This term describes the act of assigning funds from one budget category to another.
What is reallocating or shifting funds?
What are three reasons to make a budget?
What is Control your money
Achieve life goals
Plan for emergencies