JA Budget Terms review

This is money spent for goods and services and bills.

• Budget

• Expenditures or expenses

• Needs or wants

• Income

These are purchases based on immediate want or due to pressure in advertising.

• Discretionary spending

• Wants

• Impulse buying

• Fixed expenses

These are goods or services that people cannot live without.

• Wants

• Budget

• Discretionary expenses

• Needs

Examples include your phone, netflix or athletic team fees.

• Wants

• Needs

• Goals

A record of income and spending and a plan for managing money.

• Long term goal

• Variable expenses

• Budget

• Journal

Money available to spend on goods and services that ARE NOT essential

• Net income

• Discretionary income

• Gross income

• Needs

These are expenses where the amount you pay does not change month to month.

• Fixed expenses

• Variable expenses

• Discretionary income

• Net income

Examples of variable expenses (amount changes each time) include

• Rent, house payment or insurance

• Entertainment, car repairs and grocery bills

• Car payment and house payment

The total amount you earn over a period of time, such as a year, before any taxes are taken out

• Net annual income

• Deductions

• Medicare or social security

• Gross annual income

This is also referred to as your "take home pay".

• Gross income

• Net income

• Income tax

• Discretionary income