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