Budgeting Basics
What is a plan for managing income and expenses?
a budget
Money earned from a part-time job is this kind of income.
earned income
This is the cost of attending classes.
tuition
This simple action helps you discover how small purchases can add up quickly.
What is tracking your spending for a week?
You should try to save at least this percent of your monthly income.
10%
The first step in making a budget is tracking this.
expenses (or spending)
Groceries and gas are examples of this kind of expense.
variable expenses
These are additional school costs like lab fees or student fees.
mandatory fees
This type of expense changes depending on your lifestyle, like groceries or entertainment.
What is a variable expense?
This type of service helps you organize spending and track your money on your phone.
a budgeting app
This type of expense stays the same every month, like rent or a phone bill.
a fixed expense
Scholarships and grants are this kind of income
non-taxable income (or financial aid)
This item can often be rented or bought used to save money.
textbooks
This fund helps cover unexpected costs like car repairs or medical bills.
What is an emergency fund?
Cutting down on this daily beverage could save over $1,000 a year
coffee!
The opposite of fixed expenses, these change each month.
variable expenses
Buying coffee every day is an example of this type of spending.
discretionary spending (or a non-essential expense)
This type of aid must be repaid with interest after graduation
a student loan
This budgeting habit means saving money before spending.
Save First
One way to spend less is to buy this version of brand-name products.
generic
What’s the term for spending more money than you earn?
budget deficit (or overspending)
This category should be included in every budget for emergencies
savings
FAFSA stands for this.
Free Application for Federal Student Aid
This is the final step in the budgeting process, where you change your spending to stay within your income.
adjusting your budget
If you don’t need it and can’t afford it, it’s called this kind of purchase.
an impulse buy