Where Money Goes
What is the largest expense for most American households?
Housing (rent or mortgage)
What do you call money spent on wants instead of needs?
Discretionary spending
What is a plan for how you will spend and save money?
Budget
What should you do before making a big purchase?
Compare prices
What is money set aside for future use called?
Savings
What category includes groceries and eating out?
food
What is it called when you spend more money than you earn?
Overspending
Explain the 50-30-20 Rule
suggests 50% needs, 30% wants, 20% savings?
What is it called when you set money aside for emergencies?
Emergency fund
What type of goal is buying a new phone in a few months?
short-term
What expense includes gas, car payments, and public transit?
Transportation
What is a common impulse purchase trigger?
Sales or advertising
What type of expense stays the same each month?
Fixed expense
What helps avoid impulse spending?
Waiting (24 hour rule)
What type of goal is saving for college?
long-term
What type of expense is electricity and water?
Utilities
What is the term for small frequent purchases that add up over time?
“Latte factor” (or small expenses)
What type of expense can change month to month?
What is using a list before shopping an example of?
Planning spending
What helps your savings grow over time in a bank account?
interest
What spending category includes doctor visits and prescriptions?
Healthcare
What habit helps track where your money is going?
Tracking Expenses
What is the first step in creating a budget?
Tracking your income
What is paying yourself first?
Saving before spending
What is it called when you regularly add money to savings?
Consistent saving (or automatic saving)