TEST - Understanding Budgeting and Proportions

Front

What is an example of a day-to-day expense?

Back

Paying for groceries.

Front

What is important to distinguish between for financial stability?

Back

Needs and wants.

Front

How is a proportion best described?

Back

A relationship between two ratios.

Front

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

Back

Fixed expenses.

Front

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

Back

Wants.

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 purpose of a budget?

Back

To plan and track income and expenses.

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 for survival, while wants are non-essential items.