Budgeting Terms Set 1

Front

What is a budget?

Back

A plan of your expected income and how you will use it to meet your expected expenses over a period of time.

Front

What are fixed expenses?

Back

Regular payments made to cover essential living costs, such as rent or mortgage.

Front

What is budgeting?

Back

The process of planning and managing your income, expenses, and savings to achieve financial goals.

Front

What does cost of living refer to?

Back

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.

Front

What is a living wage?

Back

The lowest income necessary for a worker to meet their basic needs.

Front

What is net pay?

Back

The amount of money you take home after deductions such as taxes and other withholdings.

Front

What is gross pay?

Back

The total amount of money earned before any deductions are taken out.

Front

What are variable expenses?

Back

Costs that can change from month to month, such as entertainment or dining out.

Front

What is discretionary income?

Back

The amount of income left after all essential expenses have been paid, which can be used for non-essential items.

Front

What is an emergency fund?

Back

A savings account set aside for unexpected expenses or financial emergencies.