Budgeting Terms

Which of these is an example of a tax

• Late fee

• Bounced check fee

• Rental payment

• Social Security

Which of these is an example of a tax?

• Medicare

• Line of credit

• Health Insurance

• Retirement account

Taxes are

• a source of income

• mandatory payments to local, state and federal government

• refunds you receive

• optional payments made to local, state and federal government

A budget is BALANCED when

• the amount you earn is equal or less than to the amount you spend.

• the amount you spend is equal or less than the amount you earn

• the amount you spend is greater than the amount you earn

• the amount you save is less than the amount you spend

A variable expense is

• a bill that changes from month to month

• a bill that stays the same from month to month

• a bill that never changes

• a bill that eventually gets paid off

An example of a variable expense is

• Rental payment

• Health insurance

• Grocery bill

• Car loan payment

An example of a fixed expense is

• Rental payment

• Electric bill

• Gasoline bill

• Clothing purchases

A fixed expense is

• a bill that changes from month to month

• a bill that stays the same from month to month

• a bill that eventually gets paid off

• a bill that includes a refund

Which of the following is an example of a NEED (vs. a WANT)

• A new pair of designer shoes

• A new video game

• Medicine

• A new cell phone

Which of these are a WANT (vs. a NEED)?

• Concert tickets

• Medicine

• A warm winter coat

• A place to live