Budgeting
what is budgeting
A plan on how to spend your money
What is communication
People sharing information or ideas between one another
What is a savings account
Bank account where you can store money and earn interest over time
What's a short-term goal?
A goal that you want to achieve within less than a year
What is a paycheck?
The amount of money an employer gives their employee for their work usually throughout the week
What is the purpose of creating a budget?
So you can manage your money effectively making sure you can have enough money for necessary expenses
What are the two most common forms of communication?
Verbal communication and non-verbal
What is a checking account?
A bank account that allows you to deposit money or use a debit card for everyday transactions
What's a long-term goal?
A goal that you want to achieve within several years
What is gross pay?
Total amount of money earned by an employee before deductions
Why is it important to prioritize needs over wants in a budget?
You can manage your money so you can cover your needs and save for your wants to avoid going into debt.
What is passive communication?
When someone avoids expressing their thoughts and feelings to avoid conflict
What are the benefits to having a savings account?
You can earn interest on your money and you can keep your money safe
How does setting a time frame impact goal achievement?
It can help you keep stay focused on your goal and makes it easier to stay motivated and track progress
What is net pay?
The amount of money an employee takes home after deductions
What are fixed expenses?
Regular, unchanging costs like rent and mortgage
What is aggressive communication?
When a person expresses their thoughts and feelings in a forceful way and not caring about the other person's feelings or thoughts
What is the typical interest rate for a savings account?
Around 0.01% to 0.50%
Why is it important to set specific goals?
It provides a clear direction and helps you stay motivated
How do you calculate overtime pay?
Multiply the employee's regular hourly rate by 1.5 and then multiply that number of overtime hours worked
How can an emergency fund be incorporated into budgets?
By setting aside a specific amount of money each month in a separate savings account
What is nonverbal communication?
Sharing information using body language and facial expressions and without using words
Can having a savings account help with financial planning?
Yes it can
What do SMART goals stand for
Specific, Measurable, Achievable, Relevant, and Time-bound
What is the purpose of a W-2 form?
Report an employee's annual wages and the amount of taxes withheld from their paycheck to the IRS