Budget Vocabulary

People create and keep a personal budget to help them _____.

• set and reach financial goals

• apply for loan

• buy anything they want

• earn promotions at work

For which item would someone most likely need to save money in order to

purchase?

• a washing machine

• a tub of ice cream

• dinner for two

• a pair of socks

To have a __________ at the end of the month, I have to make sure I don't spend more than I earn and have some money to save at the end of the month.

• Income
• Expense
• Balanced Budget
• Savings

When you are making payments on a car and/or house you have a _____.

• Withdraw
• Bankruptcy
• Debt
• Overdraw

The income part of a personal budget

• is not important if it is large.

• only includes money from a paycheck (job).

• includes all income from various sources.

• is the amount left over.

The expenses section of a personal budget

• should be larger than the income section of the budget.

• shows the amount of money that is spent each month.

• includes the amount of interest earned on investments.

• is not important if income is greater than expenses.

What is a budget?

• A plan for how money will not be used

• A plan for how money will be used

• The amount you spend

• The amount you save

What is income?

• The amount you spend

• The amount you don't save

• Money taken in

Net Pay is...

• pay you get after deductions

• pay you get before deductions

• gross pay

• regular pay + overtime pay

Joe worked 35 hours this week and earned $17.25 per hour. What is Joe's GROSS PAY?

• $603.75

• $595

• $54.25

• $522.50