PF: F.A. 4.1- 4.5: Budgeting Flashcard

Front

What does the 50/30/20 budgeting rule represent?

Back

The 50/30/20 budgeting rule divides income into three categories: 50% for needs, 30% for wants, and 20% for savings, investments, and debt repayment.

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CCSS.6.RP.A.3C

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What is an impulse buy?

Back

An impulse buy is a purchase made without prior planning or consideration.

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CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

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What are fixed costs in a budget?

Back

Fixed costs are expenses that do not change from month to month, such as mortgage and car payments.

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How is a budget formed using income and expenses?

Back

A budget is formed by subtracting total expenses from total income.

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What is the purpose of savings in a budget?

Back

Savings in a budget are intended for future needs, investments, and debt repayment.

Front

What does the inequality y ≥ -x + 1 represent graphically?

Back

The inequality y ≥ -x + 1 represents a region on the coordinate plane that includes all points above and on the line y = -x + 1.

Tags

CCSS.HSA.REI.D.12

Front

What are variable costs in a budget?

Back

Variable costs are expenses that can change from month to month, such as groceries and entertainment.

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What is the difference between needs and wants in budgeting?

Back

Needs are essential expenses required for basic living, while wants are non-essential expenses that enhance quality of life.

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CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

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Why is it important to track expenses in a budget?

Back

Tracking expenses helps individuals understand their spending habits and identify areas for improvement.

Front

What role do investments play in a budget?

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Investments are a way to grow wealth over time and should be considered in the savings category of a budget.