Unit #2 Vocab Do Now

Front

What is a Budget Deficit?

Back

A Budget Deficit occurs when spending exceeds income.

Front

Define Variable Expense.

Back

Variable Expense refers to costs that vary depending on usage of products or services and can change based on various factors.

Front

What is a Budget Surplus?

Back

A Budget Surplus occurs when income exceeds spending.

Front

Explain the Envelope System.

Back

The Envelope System is a budgeting method that involves physically separating cash for different expenses.

Front

What is a Category in budgeting?

Back

A Category is a grouping of related expenditures.

Front

What is the importance of budgeting?

Back

Budgeting helps individuals manage their finances, track spending, and plan for future expenses.

Front

What are fixed expenses?

Back

Fixed expenses are costs that do not change from month to month, such as rent or mortgage payments.

Front

How can one reduce a Budget Deficit?

Back

To reduce a Budget Deficit, one can either increase income, decrease spending, or both.

Front

What is the difference between a Budget Surplus and a Budget Deficit?

Back

A Budget Surplus occurs when income exceeds spending, while a Budget Deficit occurs when spending exceeds income.

Front

What role do variable expenses play in budgeting?

Back

Variable expenses can fluctuate and impact overall budgeting, requiring careful monitoring to avoid overspending.