Personal Budget Flashcardizz

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What is a personal budget?

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A personal budget is a plan for managing income and expenses over a specific period, helping individuals allocate their money effectively.

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What are fixed costs?

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Fixed costs are expenses that do not change regardless of the level of goods or services produced, such as rent or insurance.

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What are variable costs?

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Variable costs are expenses that vary directly with the level of production or sales, such as gas or groceries.

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How do you calculate sales tax?

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To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal) and add it to the original price.

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What is a discount?

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A discount is a reduction in the price of an item, often expressed as a percentage of the original price.

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How do you find the total cost after a discount?

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To find the total cost after a discount, subtract the discount amount from the original price.

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What is income?

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Income is the money received, typically on a regular basis, for work or through investments.

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What are expenses?

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Expenses are the costs incurred in the process of earning income, including fixed and variable costs.

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What is the purpose of a budget?

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The purpose of a budget is to help individuals plan their spending, save money, and manage their financial resources effectively.

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What is the formula for calculating the total cost of an item including tax?

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Total Cost = Price + (Price x Sales Tax Rate)