Budgeting

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What is the 50/20/30 Rule in budgeting?

Back

A budgeting guideline that suggests allocating 50% of income to necessities, 20% to savings and debt repayment, and 30% to discretionary spending.

Tags

CCSS.6.RP.A.3B

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What should be included in the 'necessities' category according to the 50/20/30 Rule?

Back

Essential expenses such as housing, food, utilities, and transportation.

Front

What does the 'savings and debt repayment' category represent in the 50/20/30 Rule?

Back

It represents 20% of income that should be allocated to saving for future goals and paying off debts.

Tags

CCSS.7.RP.A.3

Front

What is considered 'discretionary spending'?

Back

Expenses that are not essential, such as entertainment, dining out, and hobbies.

Front

Define 'income' in the context of budgeting.

Back

Income is the money earned from employment, investments, or other sources.

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What is 'debt'?

Back

Debt is money that is owed to lenders or creditors.

Tags

CCSS.L.8.4C

CCSS.L.7.4C

CCSS.L.9-10.4C

CCSS.L.6.4C

CCSS.L.11-12.4C

Front

What is 'interest' in financial terms?

Back

Interest is the cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Tags

CCSS.7.RP.A.3

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How can budgeting help in managing finances?

Back

Budgeting helps individuals track their income and expenses, set financial goals, and make informed spending decisions.

Front

What is the purpose of an emergency fund?

Back

An emergency fund is savings set aside to cover unexpected expenses or financial emergencies.

Front

What are fixed expenses?

Back

Fixed expenses are regular, recurring costs that do not change, such as rent or mortgage payments.