Final Exam

Front

What is the purpose of a budget?

Back

The purpose of a budget is to allocate income and resources to meet financial goals and manage expenses.

Front

What are some common budgeting methods? Options: 50/30/20 method, envelope system, zero-based budgeting, balanced money formula, random allocation method, spending spree method, 80/20 method

Back

50/30/20 method, envelope system, zero-based budgeting, balanced money formula

Front

Why is it important to have an emergency fund?

Back

To provide a financial safety net for unexpected expenses or emergencies.

Front

What is a credit score and why is it important?

Back

A credit score is a numerical representation of an individual's creditworthiness.

Front

What a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay

Back

Net Income

Front

The cost of goods or services; money paid out

Back

Expense

Front

The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively

Back

Financial Literacy

Front

Money received for work, as a gift, or through investments

Back

Income

Front

The amount you earn before taxes and other payroll deductions

Back

Gross Income

Front

A savings account set up specifically to be used to cover financial emergencies

Back

Emergency Funds