Budgeting Vocab

Front

50/30/20 Budget

Back

A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment.

Front

Budget

Back

A plan of your expected income and how you will use it to meet your expected expenses over a period of time.

Front

Cash Envelope Budget

Back

A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories. Spending occurs only from the corresponding envelopes.

Front

Cost of Living

Back

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another.

Front

Deduction

Back

Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions.

Front

Deficit

Back

When your expenses exceed your income.

Front

Down Payment

Back

A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase. The buyer will often take out a loan to finance the remaining balance.

Front

Emergency Fund

Back

Money set aside for unanticipated expenses or loss of income.

Front

Expenses

Back

Items or services you pay for such as rent, groceries, entertainment, bills, etc.

Front

Fixed Expense

Back

A cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment).