Chapter 3: Budgeting

Writing and following a zero-based budget will help you avoid overspending and impulse purchases.

• true

• false

The zero-based budget is the best method of budgeting because:

• This type of budget is less complicated than other types of budgets

• The zero-based budget ensures that every dollar you make is assigned a specific purpose

• A zero-based budget allows less money for wants

• Sticking to a zero-based budget requires less discipline

Series of envelopes that are divided into categories and are used to store cash for planned monthly expenses.

• envelope system

• check carbon

Expenses that remain the same from month to month.

• variable

• fixed

Groceries are a

• fixed expense

• discretionary expense

• variable expense

• intermittent expense

Eating out is a

• fixed expense

• discretionary expense

• variable expense

• intermittent expense

Your monthly budget should include

• fixed expense

• discretionary expense

• variable expense

• all of the these

Car repairs are a

• fixed expense

• discretionary expense

• variable expense

• intermittent

Setting up automatic account transfers is the easiest way to build your savings for your emergency fund or large purchases.

• true

• false

Occurs when money is withdrawn from a bank account and the available balance goes below zero.

• overdraft

• reconcile