Vocabulary
The amount of money you earn before taxes and other deductions are taken out.
Gross Pay
A budgeting method that assigns specific amounts of money to different spending categories.
Zero-Based Budgeting
Tyler pays $900 for rent every month, and the amount usually stays the same. What type of expense is Tyler paying?
Fixed Expense
This is something a person must have to meet basic living requirements, such as food, housing, or clothing.
Needs
How can Unit Pricing help you save money on Groceries?
Compares Prices/Costs of Different Products based on the same unit
An expense that can change from month to month.
Variable Expense
This budgeting strategy recommends dividing your income into 50% for needs, 30% for wants, and 20% for savings and debt repayment.
50/30/20 Rule
If your gross pay is $3,000 and your take-home pay is $2,500, what is the $2,500?
Net Pay
Why might some people consider using a Budgeting App?
Easier to Track Spending
Jack is spending too much of his income on housing and wants to lower this expense. What would be the best/easiest option for him to reduce the housing costs?
Getting a Roomate
A legal agreement between a renter and landlord that sets the terms for renting a property.
Lease
Jake puts $200 aside for food, $100 for entertainment, and $50 for gas. He keeps each amount separate so he knows how much he can spend in each category. What budgeting strategy is he using?
Envelope Budgeting
Sarah's rent is $850 every month, but her grocery bill changes depending on how much she buys. Which expense would be classified as variable?
Groceries
Why is it a good reason to create and stick to a budget?
When living in an urban area you are more likely to have what type of transportation options?
Public Transportation: Walk, Bus, Subway
The cost of an item for a standard amount, such as per ounce or per pound.
Unit Price
Marcus gets paid $1,500 each month. Before spending any of his paycheck, he puts $200 into savings. He then uses the remaining $1,300 to pay bills and cover his other expenses. What budgeting strategy is Marcus using?
Pay Yourself First
Kayla earns $42,000 per year. After taxes and other deductions, she takes home less than that amount. Which amount should she use when creating her monthly spending budget?
Net Pay
Jordan already has a working phone but wants to upgrade to the newest model because it has a better camera and faster processor. How should the new phone generally be classified?
Want
You Earn $80,000 per year and save 20% of your net pay. How much would you save each year?
$16,000
This budgeting method requires you to assign every dollar of your income a specific purpose, so that your planned income minus your planned expenses and savings equals zero.
Zero-Based Budgeting
If you want to substantially reduce the amount you spend on food, what budgeting strategy would be most helpful?
Envelope Budgeting
Jordan brings home $2,500 per month, but his planned expenses total $2,675. Instead of ignoring the problem, what should Jordan do to get his budget back on track?
Review Spending & Adjust Expenses
A plan for how you will spend, save, and manage your money.
Personal Budget
You have two boxes of cereal: one costs $4.50 for 18 ounces, and another costs $3.75 for 12 ounces. Which is the better deal based on unit price?
18-ounce box for $4.50?