FPL VOCAB 06: Spending Plans

Front

What type of expense is the internet bill that Morgan and Grace pay every month, which does not change and must be paid the same amount each time?

Back

Fixed

Front

What type of expense is the electricity bill that Alex, Petar, and Addison share, which fluctuates each month based on their usage? Options: Fixed, Variable, Discretionary, Deductions

Back

Variable

Front

Nate, Petar, and Grace are planning a vacation to Hawaii. They have a certain amount of money saved up for the vacation. This is an example of Discretionary Spending because...

Back

They have freedom to choose how to spend this money

Front

Morgan brings up a strategy called __-__-__, which suggests saving 10% of their earnings before spending on anything else. What does this acronym stand for?

Back

PYF

Front

What percentage of their income should Alex, Nate, and Grace allocate for living expenses such as rent, groceries, and utilities?

Back

50%

Front

What percentage should Morgan allocate toward saving for emergencies and paying off her student debt?

Back

30%

Front

Cooper, Kaylie, and Alex are planning their monthly entertainment. They are trying to determine the percentage of their total budget that should be dedicated to dining out and entertainment to ensure a fun time. What percentage do they agree on?

Back

20%

Front

What is the financial strategy called where one can earn enough income passively without needing to work to meet financial needs?

Back

Retirement

Front

What does 'Take Home Pay' refer to?

Back

Net Income

Front

What does creating a 'Financial Plan' mean?

Back

A strategy including spending, investing, tax planning, risk management and insurance to reach life's goals.