Unit #2 Vocab Do Now

Front

What is a Budget Surplus?

Back

A Budget Surplus occurs when income exceeds spending.

Front

Define Variable Expense.

Back

Variable Expense refers to costs that vary depending on usage of products or services and can change based on various factors.

Front

What does the term 'Category' refer to in budgeting?

Back

A Category is a grouping of related expenditures.

Front

What is a Budget Deficit?

Back

A Budget Deficit occurs when spending exceeds income.

Front

Explain the Envelope System.

Back

The Envelope System is a budgeting method that involves physically separating cash for different expenses.

Front

What is the importance of tracking expenses?

Back

Tracking expenses helps individuals understand their spending habits, identify areas for improvement, and maintain a budget.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant regardless of usage, while variable expenses fluctuate based on consumption.

Front

How can one achieve a Budget Surplus?

Back

To achieve a Budget Surplus, one must increase income, reduce spending, or both.

Front

What strategies can help manage a Budget Deficit?

Back

Strategies to manage a Budget Deficit include cutting unnecessary expenses, increasing income, and creating a more realistic budget.

Front

What role does a budget play in personal finance?

Back

A budget helps individuals plan their finances, allocate resources effectively, and achieve financial goals.