Living Suite on a Budget 🏖️
This popular budgeting method divides your income into three categories—needs, wants, and savings/debt repayment—using specific percentages. Name the rule and identify what each percentage represents.
What is the 50/30/20 rule—50% for needs, 30% for wants, and 20% for savings or debt repayment.
When you pay more taxes than you actually owe, the government sends you money back. This is called?
What is a tax refund.
This is a financial goal where you try to increase your money over time.
What is building wealth.
This is a number that represents how likely someone is to repay borrowed money.
What is a credit score.
This is the money paid regularly to live in a place like an apartment or hotel suite.
What is rent.
This budgeting principle suggests you should prioritize saving and essential expenses before spending money on wants or luxury items.
What is paying yourself first.
This is the official deadline date when most individuals must file their federal taxes each year in the U.S.
What is April 15th.
This is a place where you can buy and sell shares of companies.
What is the stock market.
This is the maximum amount of money a credit card company allows you to borrow.
What is a credit limit.
These are monthly expenses like water, electricity, and Wi-Fi that keep a home running.
What are utilities.
A student consistently spends more on dining out when stressed, even though they planned a food budget. This pattern of spending triggered by emotions is known as this.
What is emotional spending.
A Tipton employee is offered a job paying $18 per hour and works 40 hours in one week. Before any taxes or deductions are taken out, this total amount they earn is known as this.
What is gross pay.
This type of investment represents ownership in real estate, like apartments or commercial buildings, without directly buying property.
What is a REIT (Real Estate Investment Trust).
A Tipton employee improves their credit score by making consistent on-time payments and avoiding new debt. These actions mainly improve this category.
What is credit behavior (payment history).
A guest is charged extra fees for damages after moving out of their suite. This payment is taken from this upfront cost.
What is a security deposit.
This simple budgeting habit involves tracking every dollar you spend to better understand where your money is going.
What is expense tracking.
This occurs when a person fails to report all of their income or does not pay enough taxes owed.
What is tax evasion (or underreporting income).
This type of investment involves lending money to the government in exchange for regular interest payments and repayment of the original amount at maturity.
What are government bonds.
Even when a person pays their balance in full each month, the percentage of credit they are using compared to their limit is still reported as this.
What is credit utilization.
A Tipton guest splits rent with a roommate, lowering their monthly housing cost. This financial strategy is called this.
What is cost sharing (or splitting expenses).
A sudden, high-cost expense—like a car repair or emergency medical bill—can derail your budget if you’re unprepared. In personal finance, these unexpected, budget-breaking costs are commonly referred to as this.
What are whammy expenses.
When employees contribute money to retirement accounts before taxes are applied, this reduces their taxable income and is called this type of contribution.
What is a pre-tax contribution.
This investment approach involves buying assets and holding them for long periods rather than trading frequently.
What is a long-term investment strategy (buy and hold).
This happens when a lender checks your credit because you applied for a loan or credit card.
What is a hard inquiry.
A Tipton tenant breaks their lease early, pays penalties, and must still cover remaining rent until a new tenant is found. This situation represents this type of financial obligation.
What is a contractual liability (or lease obligation).