Chapter 3 Recordkeeping

Front

What is recordkeeping?

Back

Recordkeeping is a way for you to manage your money by keeping track of items you spend money on during a period of time.

Front

How do you calculate monthly expenses from annual expenses?

Back

To calculate monthly expenses from annual expenses, divide the total annual expenses by 12.

Front

What is a budget sheet?

Back

A budget sheet is a financial document that outlines expected income and expenses over a specific period.

Front

How do you find the average of a set of numbers?

Back

To find the average, sum all the numbers and divide by the count of numbers.

Front

If the Oscars' total annual expenses are $58,000, what is their monthly share?

Back

$4,833.33 (calculated as $58,000 / 12).

Front

What are fixed expenses?

Back

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

Front

What are variable expenses?

Back

Variable expenses are costs that can fluctuate each month, such as groceries or entertainment.

Front

How do you track your expenditures?

Back

You can track expenditures by recording every purchase in a ledger or using budgeting software.

Front

What is the importance of budgeting?

Back

Budgeting helps individuals manage their finances, plan for future expenses, and avoid overspending.

Front

What is the formula for calculating average monthly expenditure?

Back

Average Monthly Expenditure = Total Expenditures / Number of Months.