TEST - Understanding Budgeting and Proportions

Front

What does the phrase 'pay yourself first' mean?

Back

Setting aside savings before other expenses.

Front

How do fixed and recurring expenses affect a monthly budget?

Back

They are predictable and help in planning.

Front

What is a ratio?

Back

A comparison of two quantities often expressed as a fraction, colon, or using the word 'to'.

Front

Back

That the two ratios are equal to each other.

Front

What is a non-recurring expense (whammy)?

Back

A purchase that can affect a budget due to its cost.

Front

Define budgeting.

Back

The process of creating a plan to spend your money.

Front

What are fixed expenses?

Back

Costs that do not change from month to month, such as rent or mortgage.

Front

What are variable expenses?

Back

Costs that can fluctuate each month, such as groceries or entertainment.

Front

What is the purpose of a budget?

Back

To manage income and expenses effectively.

Front

What is a savings goal?

Back

An amount of money you aim to save over a specific period.