Budgets

Front

What is a budget?

Back

A budget is a plan that outlines expected income and expenses over a specific period, helping individuals manage their finances.

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

What are variable expenses?

Back

Variable expenses are costs that can change each month, such as groceries, entertainment, and utilities.

Front

How do you calculate 10% of a budget?

Back

To calculate 10% of a budget, multiply the total budget amount by 0.10.

Front

If Robert has a budget of $2500, how much should he save for retirement if he saves 10%?

Back

$250.

Front

What is the formula to calculate annual income from hourly wage?

Back

Annual Income = Hourly Wage x Hours Worked per Week x Weeks Worked per Year.

Front

If Tricia earns $9.00 an hour and works 40 hours a week, what is her annual income?

Back

$18,720.

Front

How do you calculate the percentage of income spent on rent?

Back

Percentage of income spent on rent = (Rent Amount / Take-home Pay) x 100.

Front

If Ryan's take-home pay is $3600 and he pays $900 in rent, what percentage of his income goes to rent?

Back

25%.

Front

What is the importance of saving for retirement?

Back

Saving for retirement ensures financial security in later years when one may not be able to work.