Budget

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

How do you calculate the percentage of income spent on a specific expense?

Back

To calculate the percentage of income spent on an expense, divide the expense amount by the total income and multiply by 100.

Front

If Mrs. Alvarado's monthly income is $6,500 and she spends $1,495 on her mortgage, what percent of her income is that?

Back

22.9%.

Front

What is a circle graph?

Back

A circle graph, or pie chart, is a visual representation of data where the whole circle represents the total, and each slice represents a part of that total.

Front

How do you determine how much more is spent on one category than another?

Back

Subtract the amount spent on the lesser category from the amount spent on the greater category.

Front

If the Alvarados spend $720 on food from a $6,000 income, what percent of their income is that?

Back

12%.

Front

What does it mean to allocate a budget?

Back

To allocate a budget means to distribute or assign specific amounts of money to different categories of expenses.

Front

If medical insurance costs $300 a month, what percent of a $6,000 budget does that represent?

Back

5%.

Front

What is the importance of tracking expenses?

Back

Tracking expenses helps individuals understand their spending habits, identify areas to save, and ensure they stay within their budget.

Front

How can a budget help in financial planning?

Back

A budget helps in financial planning by providing a clear overview of income and expenses, allowing for better decision-making and goal setting.