TEST - Understanding Budgeting and Proportions

Front

What does 'pay yourself first' mean?

Back

Setting aside savings before other expenses.

Front

What are fixed expenses?

Back

Expenses that do not change from month to month.

Front

Give an example of a day-to-day expense.

Back

Paying for groceries.

Front

What is a characteristic of a need?

Back

It is essential for survival.

Front

What is a critical step in implementing a zero-based budget?

Back

Assigning every dollar of income to a specific purpose.

Front

What are variable expenses?

Back

Expenses that can change from month to month.

Front

Define a budget.

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is the difference between needs and wants?

Back

Needs are essential for survival; wants are desired for pleasure.

Front

What is a recurring expense?

Back

An expense that occurs regularly, such as monthly bills.

Front

What does it mean to track expenses?

Back

Monitoring and recording all spending to understand financial habits.