Budgeting
This is a plan for how to spend and save money over a period of time often monthly.
What is a budget?
What is rent?
This is the form your employer gives you that shows how much money you made and how much was taken out for taxes.
What is a W-2 form?
This type of bank account is best for everyday spending and comes with a debit card.
What is a checking account?
This is the term for putting money aside for future needs or goals, like buying a phone or going on a trip.
What is saving.
This is the term for income received on a regular basis, like a paycheck from a job.
What is earned income?
This is a one time payment you might pay before moving in, in case of damage or unpaid rent?
What is a security deposit?
This is the form you will fill out when you start a job so your employer knows how much tax to withhold.
What is a W-4 form?
This type of account helps you save money over time and earns a little interest.
What is a savings account?
This is the money you set aside in case of an emergency.
What is an emergency fund?
Rent, car payments, and insurance are examples of this type of monthly expense that stays the same.
What are fixed expenses?
This monthly bill covers water, electricity, and heating.
What are utilities?
This is the total amount of money you earn before any taxes or deductions get taken out.
What is gross income?
This is the money the bank pays you for keeping your money in a savings account.
What is interest?
This type of expense changes from month to month, like how much you spend on food or gas.
What is a variable expense?
If your monthly income is $3,200 and your expenses total $2,750, this is the amount left over.
What is $450?
$3,200 - $2,750 = $450
If your rent is $1,200 and utilities are $250, how much do you pay total each month?
What is $1,450?
$1,200 + $250 = $1,450
This is the amount of money you actually take home after deductions.
What is net pay?
This is a tool that helps you track all the money going in and out of your checking account.
What is a check register?
If you spend more money than you make in a month, you have created this.
What is a deficit?
A person spends 30% of their $4,000 income on housing, 20% on food and transportation combined, and saves 10%. How much money is unaccounted for in their budget?
What is $1,600?
This is is the percentage of your monthly income that financial experts recommend you spend on housing.
What is 30%?
If your gross pay is $600 and $230 is taken out for taxes and benefits, what is your net pay?
What is $370?
$600 - $230 = $370
If you deposit $1,000 into a savings account that earns 2% interest annually, how much interest will you earn in one year?
1,000 x 0.02 = 20
What is $20?
If you earn $2,000 a month and want to save 20%, how much should you put into savings?
2,000 x 0.2 = 400
What is $400?