Budgeting 101
What percentage of Americans use a budget?
35%
Give an example of a SMART goal, not on the study guide.
I want to save X $'s to buy X, by x date.
Going to the movies is an example of what type of expense?
Discretionary and Variable
How should people track and manage their funds?
By creating a budget.
What is Gross Income?
Money before deductions like taxes.
What are the Four Walls in budgeting?
Food, Shelter, Utilities, and Transportation
Which budget category should Marcus reduce first if he is overspending?
Food and Groceries
What are 3 components of a budget?
Spending, Saving, and Giving
How often should account holders review automated withdrawals?
Regularly
What is net income?
Money after taxes?
How often should we check our budget?
Monthly
What kind of money counts as income?
Anything you receive in the form of money.
Research shows nearly half of Americans feel stress about which financial issue?
Personal Debt
What should account holders watch for when reviewing transactions?
Unrecognized activity.
What is a Salary?
Income received annually?
What does a budget show you?
How much income and expenses we have going in and out.
Why is tracking your expenses important?
To ensure we don't spend more than we make. Also to allow for our accounts to have a correct balance.
What do discretionary expenses include?
Things that we do not need.
How much money do we want to have in our savings account according to the first foundation?
$500
What is a wage?
Income received by the hour.
why does it usually take 3 months for your budget to start working?
Because we have variable expenses. We may have to adjust some of our categories and target goals.
What does it mean to overdraft your account?
Daily double
Spending more money than is in your account. You will receive a penalty fee.
What is a fixed expense? Give 3 examples
One that does not change, month to month. Cell phone, Mortgage, Car Payment
How can a budget help you save money?
By ensuring you spend less that you make?
If my home is worth $200,000 and I only owe $50,000. What do we call the $150,000 that we have in value?
Daily Double
Equity