Balanced Budget

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What is a balanced budget?

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A balanced budget occurs when a person's income equals their expenses, meaning they do not spend more than they earn.

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What is a surplus in budgeting?

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A surplus is when a person has more income than expenses, allowing them to save or spend the extra money.

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What is an expense?

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An expense is any cost or payment that a person must pay, such as rent, groceries, or bills.

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What is income?

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Income is the money a person earns from work, investments, or other sources.

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What is a fixed expense?

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A fixed expense is a cost that does not change from month to month, such as a car payment or rent.

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What is a variable expense?

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A variable expense is a cost that can change from month to month, such as groceries or entertainment.

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How can someone avoid being overdrawn at the bank?

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To avoid being overdrawn, a person can track their spending, create a budget, and reduce unnecessary expenses.

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What does it mean to be overdrawn?

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Being overdrawn means that a person has spent more money than they have in their bank account, resulting in a negative balance.

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What is the purpose of a budget?

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The purpose of a budget is to plan and track income and expenses to ensure financial stability and avoid overspending.

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How do you calculate the amount of money left to spend in a budget?

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To calculate the amount left to spend, subtract total expenses from total income.