Budgeting NGPF

Front

What is Medicare?

Back

Medicare is a federal health insurance program for people who are 65 years and older. Employees pay into this program throughout their working years.

Front

What does the 50/20/30 Rule for budgeting represent?

Back

The 50/20/30 Rule suggests that 50% of your income should go to needs, 30% to wants, and 20% to savings.

Front

What happens if the federal government spends more money than it collects?

Back

It results in Borrowing Money or Debt.

Front

What are bills?

Back

Bills are debts you owe for goods (like food, games, or clothes) and services (like haircuts).

Front

What is an example of a want for a 9-year-old but a need for a 16-year-old with a job?

Back

A cell phone.

Front

What are needs?

Back

Needs are essential items required for survival, such as food, shelter, and clothing.

Front

What are wants?

Back

Wants are non-essential items that enhance your quality of life, such as toys, games, and luxury items.

Front

What is discretionary spending?

Back

Discretionary spending is the portion of the budget that is spent on non-essential items.

Front

What is mandatory spending?

Back

Mandatory spending is government spending on programs that are required by law, such as Social Security and Medicare.

Front

What is a budget?

Back

A budget is a plan that outlines how much money you expect to earn and how you will spend it.