TEST - Understanding Budgeting and Proportions

Front

What does the phrase 'pay yourself first' mean?

Back

Setting aside savings before other expenses.

Front

What is a non-recurring expense (whammy)?

Back

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

Front

In the 50/30/20 budget strategy, what does the 20% represent?

Back

Savings.

Front

Give an example of a non-recurring expense.

Back

An annual subscription.

Front

What term describes expenses that do not change from month to month?

Back

Fixed.

Front

What is the purpose of budgeting?

Back

To plan and control spending to achieve financial goals.

Front

What are fixed expenses?

Back

Expenses that remain constant each month, such as rent or mortgage.

Front

What are variable expenses?

Back

Expenses that can change from month to month, such as groceries or entertainment.

Front

What is the 50/30/20 rule?

Back

A budgeting strategy that allocates 50% to needs, 30% to wants, and 20% to savings.

Front

What is the difference between needs and wants?

Back

Needs are essential expenses (like food and housing), while wants are non-essential (like luxury items).