Budgeting

What is INCOME?

• The bills you have to pay for.

• Money that comes in or is earned.

• Money that you have lost.

Where can you earn income from?

• Money gifted from somebody

• A job

• All of the above

What is a DEDUCTION?

• Money that is taken out of a paycheck to go to other designated sources (such as taxes or insurance).

• Money that you must payout.

• Money that comes in or is earned.

Select 2 things that are considered deductions.

• State Taxes

• Utilities

• Rent

• Federal Taxes

What are FIXED EXPENSES?

• Money that comes in or is earned.

• Money that is taken out of a paycheck to go to other designated sources (such as taxes or insurance).

• Payments that are always the same amount of money; predictable.

Select 2 things that can be considered a Fixed Expense?

• Food

• Rent

• Utilities

• Clothing

What is a FLEXIBLE EXPENSE?

• Payments that are always the same amount of money; predictable.

• Payouts of money that can change; they are not always the same amount.

• Money that is earned by working more than the usual number of hours

Select 2 things that can be considered a Flexible Expense.

• Rent

• Car Payment

• Food

• Entertainment

When making a budget, a person’s needs should come before their wants.

• True

• False

A financial plan is called a

• budget

• tax

• allowance

• income