Budgeting

What is gross monthly income?

• the money you earn multiplied by the taxes that are taken out

• the money you earn after taxes are taken out

• the money you earn before taxes are taken out

• the money you earn multiplied by the taxes that are taken out

What is net monthly income?

• the money you earn before taxes are taken out

• your “take home” pay or paycheck amount; the money you earn after taxes are taken out

• The money you earned combined with your neighbors income.

• the money you earn combined with your wife's income

What are tax deduction?

• money added to your income for taxes

• money taken out of your income for taxes

What are utilities?

• Lawn Mowing and Renovations

• Gas, Water, Electric

• Entertainment and Leisure Activities

What is liability car insurance?

• Insurance that covers the damage of the other drivers car.

• Insurance that covers the damage of your car and the other drivers car.

A minimum of liability insurance is required by law.

• True

• False

What is full coverage insurance?

• Insurance that covers the damage to your car and the other drivers car.

• Insurance that covers the damage to your car only.

Full coverage insurance is required by law.

• True

• False

Groceries only include food for your home.

• True

• False

A budget is a _________________.

• boring activity that makes you lose money

• spending plan where you choose the amount of money that you wish to spend on different areas of life

• thing that you should only do if you have a lot of money

• bill that you have to pay once a month