Budgeting - Personal Finance

What is a budget?

• A calendar used to plan out your activities for the month

• A plan for spending and saving your money

• A plan to manage your time for the day

• A type of savings account

Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...

• Cell phone plan

• Rent

• Clothing

• Electricity bill

What is income?

• The money that you earn

• The money that you spend

• Making a withdrawal

• Making a phone call

What is gross pay?

• The money that you earn before taking out deductions

• The money that you earn after taking out deductions

What is net pay?

• The money that you earn before taking out deductions

• The money that you earn after taking out deductions

Why should you use your NET pay when creating a budget?

• Your net pay will always be higher, so you'll have more money to spend

• Your net pay is a more accurate picture of how much money you have available to spend or save

• Your employer knows what your gross pay is, but you only know what your net pay is

• Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget

Which of the following is a want?

• Food

• Water

• Shelter

• Video game

A cellphone bill is a 

• variable expense 
• fixed expense 

Car insurance is a 

• variable expense
• fixed expense 

School supplies are a

• variable expense
• fixed expense