JA Finance Budget+Assessment

What are short-term goals?

• hard to reach goals

• goals that take 3 months to a year to accomplish

• goals that can be accomplished over the course of a week or weekend

• goals categorized by needs and wants

What are long-term goals?

• goals that our parents set for us to accomplish in the future

• goals that take 3 months to a year to accomplish

• goals that take a year or more to accomplish

• goals categorized by needs and wants

What is the amount of earnings made over 1 month, after deductions?

• Total Annual Income

• Net Monthly Income

• Gross Monthly Income

• Gross Annual Income

What is a record of income and expenditures for a given time period called?

• Credit

• Investment

• Budget

• Interest

When budgeting, what is the first category you should consider?

• wants

• needs

• discretionary funds

• important expenses

What category of a typical family budget do people spend most of their money on?

• food

• housing

• transportation

• entertainment

Jason went to the grocery storeto buy a gallon of milk for his mom. While waiting in the checkout line, he saw a display for a new chocolate-caramel candy bar, so he bought that too.

What is the candy bar purchase an example of?

• special treat he earned

• impulse buy

• need

• payment for running an errand for his mom

Net Monthly Income (NMI) is the amount of money available for spending after taxes are deducted.

How is discretionary income different from this?

• Discretionary income is money available after monthly bills are paid and basic living needs are met.

• Discretionary income is your whole budget.

• Discretionary income is money you aren't allowed to spend.

• They are the same because both have money taken out of your gross income first.

What is PYF?

• Prepare Your Future - automatically putting away money every month for future use

• Pay Yourself First - automatically putting away money every month for future use

• Prepare Your Finances - keeping your monthly spending within budget