Personal Budget

Front

What is a personal budget?

Back

A personal budget is a plan that outlines an individual's expected income and expenses over a specific period, helping to manage finances effectively.

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What are fixed expenses?

Back

Fixed expenses are costs that do not change from month to month, such as rent or loan payments.

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What are variable expenses?

Back

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

Front

Is a cell phone bill a fixed or variable expense?

Back

Fixed.

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What is an example of a variable expense?

Back

The cost of food.

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What is a loan payment classified as?

Back

A loan payment is classified as a fixed expense.

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How do you calculate the percentage of income spent on expenses?

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Percentage = (Total Expenses / Total Income) x 100.

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If Ryan's car payment is $350 and he pays $100 for gas, what is his total transportation cost?

Back

$450.

Front

If Ryan's take-home pay is $9,000, what percentage of his income does he spend on transportation costs?

Back

5%.

Front

What is the difference between fixed and variable expenses?

Back

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