Personal Finance Chapter 2 Study Guide

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

What is a budget?

A written plan for saving, giving, and spending

What is considered income?

All money that you receive, including money from your job, gifts, allowances, etc.

What is an intermittent expense?

An expense that occurs at various times throughout the year and tends to be in large lump sums example: insurance every 6 months

What is a variable expense?

An expense that varies in dollar amount from month-month, but that you can expect to have every month example: electricity; utilities

The way you break up your ______ (in your budget) is up to you.

Categories

What is commission?

Earnings based on a percentage of the sales made

Tracking your _____ throughout the month is important because it lets you know if you are _____ to the budget that you _______.

expenses; sticking; created

When can budgeting start?

now

A marriage is a ______. This includes ______ and finances.

partnership; budgeting

You need to know your money _____, whether you are married or single

personality

Can budgeting still happen when you have irregular income?

yes

Where should you remove money from when you overspend in a budget category?

another spending category

Budgeting gives you _____ of your money and sets you up for financial ______ in the future.

control; success

Why do most people not budget?

They lack the discipline to stick to the budget

Personal Finance is ______ head knowledge and ______ behavior.

20%; 80%

What percentage of Americans actually create and maintain a budget?

35%

What percentage of Americans feel stress and anxiety about the amount of personal debt they have?

46%

What is the envelope system?

A method of budgeting that uses envelopes with labels for specific budget categories each moth

What is a discretionary expense?

A non-essential expense for things that you don't need examples: eating out, nails

Find creative ways to be _______ with your time and money.

Generous

What is the second component of budget?

Giving

What is the first component of budget?

Income

What is irregular income?

Income that comes in at different amounts or at different times, or both

How often should you create budgets?

Monthly

What is the third component of budget?

Saving

What are the 4 walls?

Shelter, utilities, transportation, and food

What is the fourth component of budget?

Spending

What is gross-income?

The amount of money that you make, BEFORE taxes and deductions

What is net income?

The amount of money that you take home on your paycheck

What is income?

The amount of money you earn, the first component of a budget example: rent

What is a zero-based budget?

The best kind of budget, every dollar has a home and direction/plan. Your income, minus your expenses, is equal to zero

What is the best way to budget?

The way that works for you (on paper, a spreadsheet, budgeting app, etc.)

What should you use to plan your budget for upcoming expenses?

a calendar

What is a cash flow statement?

a statement that shows what has already happened to your money

What do you need to help you with your finances as a single person?

an accountability partner


Set pelajaran terkait

Chapter 6.7 - Dividing Polynomials

View Set

Prep U - Honan - Neurologic Trauma

View Set

Describing chemical reactions 8.1 chem

View Set

Organizational Behavior - Teams vs. Groups: What Is the Difference?

View Set