Do Now #6: Vocab & Net Income

Front

What is a Budget Surplus?

Back

A Budget Surplus occurs when income exceeds expenses or spending.

Front

Calculate Kimora's gross pay for one week if she earns $23.50 per hour and works 35 hours.

Back

$822.50

Front

What are Variable Expenses?

Back

Variable Expenses are costs that change from month to month.

Front

Calculate Kimora's net pay for two weeks if her weekly gross pay is $822.50 and taxes are 12%.

Back

$1,447.60

Front

What should Jamal use to start his budget?

Back

Budget Percentages.

Front

What is Net Income?

Back

Net Income is the amount of money left after all expenses and taxes have been deducted from gross income.

Front

What is a Fixed Expense?

Back

A Fixed Expense is a cost that remains constant each month, such as rent or mortgage payments.

Front

What is the formula to calculate Gross Pay?

Back

Gross Pay = Hourly Wage x Hours Worked.

Front

What is the purpose of a Budget?

Back

A Budget helps individuals plan their income and expenses to manage their finances effectively.

Front

What is the Envelope System in budgeting?

Back

The Envelope System is a budgeting method where cash is divided into envelopes for different spending categories.