Budgeting Flashcard

Front

What is the difference between Net Pay and Gross Pay?

Back

Net Pay is take-home pay, while Gross Pay is before taxes and deductions.

Front

Which source of income should you use for budgeting?

Back

Your job

Front

What should be your largest expense when creating a budget?

Back

Housing

Front

What is the purpose of tracking your spending?

Back

To record your purchases

Front

What should you do with receipts, bills, and other financial documents?

Back

Keep them in a folder or envelope

Front

What should you do if your income is greater than your expenses?

Back

Adjust your budget to save more

Front

What does the 50/30/20 budgeting method mean?

Back

50% of income is used for expenses, 30% is allocated for wants, and 20% goes to savings or debt payments.

Front

What is the purpose of having an emergency fund?

Back

To pay for unexpected expenses

Front

According to the principle of PYF, if Chloe is earning $2995 a month, how much should she be putting into savings?

Back

$299.50

Front

Abigail, Michael, and Emma are playing a game of Monopoly. Emma is faced with a situation where she has to trade off for one decision or another. This situation is best described as a...

Back

opportunity cost