Budgeting and Money Management

FIXED EXPENSES

• are expenses that do not change each month.

• are expenses that can go up and down each month.

• are differences between planned and actual income or expenses.

• describe how you will pay for achieving your personal goals.

ASSETS

• are items of value that you own which may be appreciating or depreciating in value.

• allows you quick and easy access to your money without penalties.

• is interest earned on both principal and previous interest earnings.

• are things we desire to buy.

VARIABLE EXPENSES

• are expenses that do not change each month.

• are expenses that can go up and down each month.

• is money added to a checking or savings account.

• are special checks that can be ordered from banks or other retailers of personal checks. They have the advantage of leaving you with an exact and immediate copy of every check you write.

A car is an example of an asset.

• true

• false

A deficit is when more money is spent than is earned or received.

• true

• false

something you identify and work on to achieve

• needs
• money
• goal
• wants

A budget is something you should not revisit and change.

• true

• false

Money earned through employment and investments

• budget
• expense
• income
• debt

If you are trying to substantially reduce the amount you spend on food, you should try...

• Go out to dinner

• Eat and cook your meals at home

• buy all your snacks at Cumberland Farms

• purchase all national brand foods

Is a spending plan for managing money during a given period of time

• debt
• expense
• budget
• fixed expense