Budget

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What is a budget?

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A budget is a financial plan that outlines expected income and expenses over a specific period.

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How do you calculate monthly savings needed to reach a financial goal?

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Divide the total amount you want to save by the number of months you have to save it.

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What is considered income?

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Income includes money received from work, investments, or other sources, such as wages, tips, and commissions.

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What is not considered income?

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Savings from buying promo items are not considered income.

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What does 'pay yourself first' mean?

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It means to set aside a portion of your income for savings before spending on anything else.

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What are insufficient funds?

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Insufficient funds occur when there is not enough money in an account to cover a transaction.

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What is a personal budget used for?

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A personal budget helps individuals set and reach financial goals.

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What is a negative balance?

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A negative balance occurs when withdrawals from an account exceed the available funds.

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What is compound interest?

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Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

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What is a financial goal?

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A financial goal is a specific objective related to money management, such as saving for a car or paying off debt.