Budget 1
Setting up information about the money that goes in and comes out of your household each month.
What is a budget?
Money earned through employment.
What is Income?
Money spent to buy goods and pay for services
What are Expenses?
Money is put away into a bank to use later or for an emergency
What are Savings?
Items or things you would like to have but are not necessary
What are Wants?
Things you must have to survive (food, water, shelter) or to have personal success.
What are Needs?
10% of your net income should go to this.
What is a personal retirement plan?
Type of expenses that stay the same each month.
Fixed Expenses
Income is greater than expenses.
What is a surplus?
Total income of the year including wages, tips, bonuses, interest, and income from other sources?
What is gross income?
You are spending more money than you are earning every month.
What is a deficit?
A personal plastic card you use to get money from your bank account(s)
What is a Debit Card?
Type of expenses that change each month
Variable Expenses
A machine is often found on a wall outside of a bank where you can withdraw from / deposit into your bank account
What is an ATM – Automated Teller Machine?
The money you put into your bank account
What is a Deposit?
The money you take out of a bank account.
What is a Withdrawal?
Money that you borrow on a plastic card must be repaid.
What is a Credit Card
A 4 digit number to help you secure or verify your money
What is a PIN (Personal Identification Number)?
Expenses are greater than income.
What is a deficit?
The money you pay to the government, from your paycheck from income.
What are Taxes?
The amount of income a person has to invest, save or spend after deducting income taxes. Without necessities?
What is disposable income?
Reality, Restraint and Responsibility
What are the 3 R's to budgeting?
The amount of income a person has to invest, save, spend after taxes and necessities have been paid.
What is discretionary income?
Weekly. Bi-wkly. Semi-monthly. Monthly.
What is a pay schedule?
Expenses not planned for.
What is unexpected expenses?