Budgeting Vocab

What is a budget?

• A plan for unexpected expenses

• A written plan for giving, saving, and spending

• A list of debts

• A summary of past expenses

What is income?

• Money spent on groceries

• Money received for work, as a gift, or through investments

• Money saved in a bank

• Money borrowed from a friend

What is a fixed expense?

• An expense that changes every month

• An expense that remains the same from month to month

• An expense that occurs once a year

• An expense that is optional

What is a variable expense?

• An expense that is always the same

• An expense that varies in dollar amount from month to month

• An expense that is unnecessary

• An expense that is paid annually

What is an intermittent expense?

• An expense that occurs monthly

• An expense that occurs at various times throughout the year in large, lump sums

• An expense that is always fixed

• An expense that is always variable

What is a discretionary expense?

• An essential expense

• An expense for things you don’t need

• A fixed expense

• A variable expense

What is a zero-based budget?

• A budget with no savings

• A cash-flow plan that assigns an expense to every dollar of your income

• A budget that only tracks income

• A budget that ignores expenses

What is net income?

• The amount you earn before taxes

• The amount you earn after payroll taxes and other deductions

• The total amount of your expenses

• The amount you save each month

What is gross income?

• The amount you earn after taxes

• The amount you earn before taxes and other payroll deductions

• The amount you spend on essentials

• The amount you save for retirement

What are the four basic parts of every budget?

• Income, debts, loans, and savings

• Income, giving, saving, and spending

• Income, taxes, expenses, and savings

• Income, investments, debts, and spending