7.1 Budgeting

Front

Car insurance is a ____________ expense

Back

fixed

Front

Fixed or variable expense: Groceries

Back

Variable

Front

Medical care is an example of a ______

Back

Need

Front

A financial plan is called a

Back

budget

Front

If an expense can be cut from your budget to save money, it is considered a ______.

Back

want

Front

What is a budget?

Back

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

Front

What are fixed expenses?

Back

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

Front

What are variable expenses?

Back

Variable expenses are costs that can fluctuate, such as groceries or entertainment.

Front

What is the difference between needs and wants?

Back

Needs are essential for survival (e.g., food, shelter), while wants are non-essential items (e.g., luxury goods).

Front

Why is budgeting important?

Back

Budgeting helps individuals manage their finances, save for goals, and avoid debt.