Basic Budgeting

Budgeting is crucial to your financial success.

• True

• False

How do wages and salary differ?

• Wages describe what you earn on an annual basis

• Wages mean you have a standard amount in each paycheck

• Salary describes what you earn on an annual basis

• Salaried employees are likely to be paid for overtime

The amount of money you take home is called your

• Net Pay

• Total Pay

• Gross Pay

• Available Pay

The amount of money you make is called:

• Taxes

• Gross Pay

• Net Pay

• Available Pay

If an expense can NOT be removed from your budget to save money, it is considered a _____.

• Income

• Need

• Want

• Savings

Preparing a budget includes

• Income, Expenses, and Saving

• Only listing your debts

• Only listing your expenses

• Only listing your income

Examples of Fixed Expenses include:

• Gas, food, phone

• Cable, entertainment, food

• Mortgage, loans, rent

• Clothing, gas, food

Which one is a fixed (same amount, same time) payment?

• Groceries

• Rent

• Gas

• Clothing

David has an income of $15.50 and spends $10 a week at the game shop and $3.50 a week on art supplies. Is he within budget?

• Yes

• No

Which of these is the correct way to calculate savings

• Expenses - income = saving

• Income - savings = savings

• savings - income = expenses

• Income - expenses = savings