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Terms
Budgeting
100

Budgeting controls spending.

True.

100

_______ is money that is earned or received through work or investments on a regular basis

Income

100

What is the definition of savings?

Money that one has saved
100
Will a budget give you more money?
No
200

Your budget will stay the same for a lifetime

False

200
An example of a fixed expense is:_____ 1.clothing. 2.auto insurance. 3.an electric bill. 4.educational expenses.
2. auto insurance
200
What is the definition of budgeting?
An estimate of income and expense.
200
A clearly written financial goal would be: 1.To save money for college for the next five years 2.To invest in an international mutual fund for retirement 3.To establish an emergency fund of $4,000 in 18 months 4.To pay off credit card bills this year
3.To establish an emergency fund of $4,000 in 18 months
300
The budgeting process starts with monitoring current spending.
True
300

A ______ can help monitor your spending

budget tracker

300

Used as a record to monitor spending and saving

Budget tracker

300
An example of a long-term goal would be: 1.an annual vacation. 2.saving for retirement 3.buying a used car. 4.completing college within the next six months.
2.saving for retirement
400
Rent is considered a fixed expense.
True
400

_____ are important things that help you live your life and are individual to the person.

Needs

400

A formula that is a method of budgeting your money

What is the 50/30/20 Rule?

400
What is commonly considered a flexible expense? 1.rent 2.a mortgage payment 3.home insurance 4.entertainment
4.entertainment
500
Flexible expenses stay about the same each month.
False
500

____ are expenses that can be cut out of your budget to save money.

Wants

500
Used to help offset unexpected costs/emergencies, for rewards, and/or to meet a goal.
Rainy day fund
500
The final phase of the budgeting process is to: 1.set personal and financial goals. 2.compare your budget to what you have actually spent. 3.review financial progress. 4.monitor current spending patterns.
3.review financial progress.