Money Terms
What is money management?
The planned use and control of money resources
What is an envelope Budget?
Budgeting by placing money in labeled envelopes
Why prepare a budget?
To live within your income.
Tina writes down all her monthly expenses and income from allowance and lunch money. She notes how much she spends on transport, food, and phone credit.
Which step of the budgeting process is this?
Organize Information
Is Rent a fixed or flexible expense?
Fixed expense
What is a Budget?
A document used to record income and expenses.
What is a chequing account budget?
Budgeting through a chequing account?
How does a budget reduce stress?
By giving you control and planning power
At the end of the month, Tina reviews her savings. She successfully saved $1,000 and is on track to reach her goal in four months.
Which step of the budgeting process is this?
Evaluate
Is food a fixed or flexible expense?
Flexible expense
What is a legal tender?
Give 2 examples
Any form of money accepted as payment.
Bank notes & Coins
What is a savings account?
Using a savings account to manage money
How does a budget help you long-term?
It supports goal setting and saving.
Tina begins her new routine. She prepares lunch at home twice weekly and sets aside $1,000 in an envelope each month.
Which step of the budgeting process is this?
Implement the plan
Is savings considered and expense?
Yes, its a planned financial goal.
What are fixed expenses?
Give an example
Costs that stay the same each month
What is a combination budget?
Name a record a budget provides.
A financial record.
Tina wants to buy a new school bag that costs $4,000. She decides to save $1,000 each month to reach her goal in four months.
Which step of the budgeting process is this?
Set or determine goals
Is electricity always fixed?
Give reason for your answer
No, its a flexible expense
What are flexible expenses?
Give an example
Costs that change from month to month
Which type of budget usually tracks spending?
Envelope Budget
What behaviour does budgeting prevent?
Impulse buying.
After reviewing her spending, Tina decides to pack lunch twice a week to reduce food costs and increase her savings.
Which step of the budgeting process is this?
Make decisions
What expense might change with seasons?
Utility Bills