Budgeting Review Sheet
What is a budget?
An estimate of income and expenses over a period of time.
What is a fixed expense?
An expense that is the same cost every month
What is a variable expense?
An expense that varies from month to month
What is an example of a variable expense?
Food
What is opportunity-cost?
The best alternative that must be given up when making a choice.
What is an emergency fund?
Account used to set aside money, needed in the event of a financial development
What is an example of a fixed expense?
Cell phone bill
What is income?
Money received
What are expenses?
Money spent or cost on something
What are the three R's in balancing a budget?
Reality, Responsibility, Restraint
What is a long-term goal?
Something a person or organization plans to achieve within FIVE years
What is a short term goal?
Something a person or organization plans to achieve within ONE year
What is an intermediate goal?
Something a person or organization plans to achieve withing 2-4 years
What does SMART stand for?
Specific Measurable Attainable Realistic Time Frame
What is the purpose of a budget?
To help control spending by indicating how much money should be saved.
What is a budget variance?
What is leftover after spending