Financial Literacy

Front

What is a budget?

Back

A plan for spending money

Front

What is the purpose of a budget?

Back

To track income and expenses

Front

What is savings?

Back

Money set aside for future use

Front

What is the recommended percentage of income to save?

Back

10%

Front

What is an emergency fund?

Back

Money saved for unexpected expenses

Front

What is an expense?

Back

Money spent on wants and needs

Front

What is discretionary spending?

Back

Spending on non-essential wants

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses are predictable, while variable expenses can change.

Front

What is the 50/30/20 rule?

Back

A budgeting rule that allocates 50% of income to wants, 30% to needs, and 20% to savings.

Front

What is passive income?

Back

Income earned from investments.