Budgeting Basics
This is the amount of money left after taxes are taken out.
(What is Net Pay?)
Money earned before taxes and deductions are taken out.
(What is Gross Pay?)
Expenses that stay mostly the same each month, like rent.
(What are Fixed Expenses?)
Money set aside for unexpected emergencies.
(What is an Emergency Fund?)
A legal agreement to rent a home or apartment.
(What is a Residential Lease?)
This budgeting method gives every dollar a job.
(What is a Zero-Based Budget?)
The amount of money received after taxes and deductions.
(What is Net Pay?)
Expenses that change month to month, such as entertainment or gas.
(What are Variable Expenses?)
A strategy where savings money is set aside before spending anything else.
(What is Pay Yourself First?)
The average amount of money needed to maintain basic living expenses in an area.
(What is Cost of Living?)
This budgeting rule suggests 50% needs, 30% wants, and 20% savings.
(What is the 50/30/20 Budget?)
A worker earns $18/hour and works 35 hours weekly. Before taxes, what is their weekly income?
(What is $630?)
Rent, car insurance, and a gym membership are examples of this type of expense because they are predictable monthly costs.
(What are Fixed Expenses?)
Someone who saves $100 every month before paying for entertainment is following what financial strategy?
(What is Pay Yourself First?)
Your landlord raises rent from $1,400 to $1,650. By how much did your housing cost increase monthly?
(What is $250?)
These are all the costs you must pay each month.
(What are Expenses?)
An employee has a salary of $52,000 per year. Assuming 26 paychecks annually, what is the approximate gross pay per paycheck before taxes?
(What is about $2,000?)
A family’s electricity bill increases during summer because of air conditioning use. What type of expense is this and why?
(What is a Variable Expense because it changes based on usage?)
This term describes how expensive it is to live in a certain area.
(What is Cost of Living?)
An employee’s gross monthly pay is $5,200. After taxes, insurance, and retirement deductions, take-home pay is $3,950. Calculate the total deductions and identify which pay amount matters most for budgeting.
(What are $1,250 in deductions, and Net Pay matters most?)
A person’s budget includes rent, groceries, Netflix, gas, and emergency car repairs. Categorize each as fixed, variable, need, or want.
(What is rent = fixed need; groceries = variable need; Netflix = variable want; gas = variable need; car repairs = unexpected variable need?)