Easy
Definitions
Definitions
What is income?
The money you earn from work or other sources.
What is the 50/30/20 rule?
This rule divides your income into needs, wants, and savings
What are need?
Food, housing, and transportation fall under this essential category
What is deficit?
When your expenses are greater than your income
What is a goal?
This term means a short‑term money target you want to reach soon, like saving $100
What is expense?
Money you spend on goods, services, or bills.
“What is zero‑based budgeting?
This method assigns every dollar a job
What are wants?
Streaming services and eating out fall under this non‑essential category
What does fixed mean?
A cost that stays the same every month, like rent
What is a purpose in terms of budgeting?
This word means the specific reason you are saving money, such as buying new shoes
Money you set aside instead of spending.
What is envelope budgeting?
This method uses envelopes to limit spending in each cateogory.
What is substition?
Choosing more affordable brands rather than more "luxurious" brands to save money.
What does variable mean?
A cost that changes from month to month, like groceries
What is planning?
This term means breaking a big financial goal into smaller steps
What is surplus?
Extra money left over after all expenses are paid.
What is a budget audit?
Reviewing your spending at the end of the month to reflect
What is an impulse purchase?
Buying something suddenly without thinking about it
What is allocation?
The act of dividing your income into different categories.
What is prioritizing?
This word means deciding which goals matter most and should be funded first
What is budgeting?
A plan that shows how you will divide your income between spending and saving.
What is budget adjustment?
Changing your budget when your income or expenses shift
What is substition?
Choosing more affordable brands rather than more "luxurious" brands to save money.
What is Depreciation?
The decrease in value of an item over time.
What is tracking?
This term means checking your progress toward a goal and adjusting if needed