Budgeting Vocabulary (NGPF)

Match the following definitions to the correct vocabulary word.

• cost of living

• Not having or earning much money.

• income

• The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another.

• low income

• Money that is received from work, investments, business, etc.

• emergency fund

• Money set aside for unanticipated expenses or loss of income.

• living wage

• The lowest income necessary for a worker to meet their basic needs.

Match the following definitions to the correct vocabulary word.

• wage

• Total earnings before any deductions are taken.

• salary

• Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay.

• net pay

• A fixed amount that you are paid over a period of time, regardless of how many hours you work.

• gross pay

• A set amount you are paid for every hour that you work; also called hourly pay.

• deduction

• Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions.

Match the following definitions to the correct vocabulary word.

• budget

• A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories. Spending occurs only from the corresponding envelopes.

• zero-based budget

• A strategy where you save a specified amount of your paycheck before doing anything with the rest of your money.

• pay yourself first

• A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment.

• 50/30/20 budget

• A plan of your expected income and how you will use it to meet your expected expenses over a period of time.

• cash envelope budget

• A budgeting method where every anticipated earning is assigned a role to be spent, saved, or invested somewhere, so there's no "leftover" money with no purpose.

Match the definitions to the correct vocabulary words.

• deficit

• When your income exceeds your expenses and you have money leftover.

• fixed income

• The cost for one item or measurement that allows it to be easily compared to other similar products to evaluate which is a better deal.

• surplus

• Income that remains the same from week to week or month to month.

• unit price

• Income that varies from week to week or month to month.

• variable income

• When your expenses exceed your income.

Match the definitions with the correct vocabulary words.

• discretionary expense

• A cost that appears irregularly or that changes in amount (e.g., utility bills).

• fixed expense

• A cost that a business or household can survive without if necessary. (Ex: going out to eat, streaming services)

• expenses

• A cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment)

• variable expense

• The basic services your home, apartment, or business needs to keep it comfortable and functioning properly (e.g. water, electricity, etc.).

• utilities

• Items or services you pay for such as rent, groceries, entertainment, bills, etc.

Match the definitions to the correct vocabulary words.

• residential lease

• Buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

• wants

• A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase. The buyer will often take out a loan to finance the remaining balance.

• downpayment

• Expenses that help you live more comfortably.

• needs

• A contract between a tenant and a landlord providing the terms and costs for renting the property.

• public transportation

• Expenses that are essential for you to be able to live and function.