Money
Money in the form of cash and currency acts as a
Medium of exchange
A person budgeted $100 a month for entertainment and spent $150 on restaurants and movies this month. To maintain a balanced budget for this month, the person will need to
Reduce another variable expense that month
deficit
spending more than you have
What is the purpose of a W2?
To itemize how much money was earned by an employee and how much was withheld and sent to the Internal Revenue Service (IRS)
In preparing a monthly budget, a person estimates income and expenses. To be sure that the budget is realistic, the person should
record actual expenses for at least a month or two.
Net pay
The amount of money you take home after deductions
What is the purpose of a W4?
To allow the employer to withhold federal income taxes from an employee’s wages
What is PYF?
Pay Yourself First
ex-.Saving money from each paycheck before spending any of it
Inflation
a general increase in prices and fall in the purchasing value of money.
Any money you receive such as an allowance or paycheck
Income
What is a variable expense?
Something that changes the amount paid each month
ex-gas
Dependents
a person who relies on another, especially a family member, for financial support.
Gross wages
Total amount of money you earned without deductions
What is a fixed expense?
Something that you pay the same amount each month.
ex- rent
Income
money received, especially on a regular basis, for work or through investments.