Financial services Develop and use a Personal budget

The amount of money earned over a period of time.

• Income

• Variable Expense

• Fixed Expense

• Budget

An expense that differs from month to month.

• Income

• Variable Expense

• Fixed Expense

• Budget

An expense that is the same amount and cannot easily be changed.

• Income

• Variable Expense

• Fixed Expense

• Budget

A plan that is used to determine how money will be spent.

• Income

• Variable Expense

• Fixed Expense

• Budget

True or False: All types of expenses are the same each month and never change.

• True

• False

True or False: Income can either come from wages (hourly earnings) or Salary (monthly or yearly earnings).

• True

• False

The expenses section of a personal budget

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

• includes the amount of interest earned on investments.

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

• is not important if income is greater than expenses.

People keep a personal budget to help them

• set and reach financial goals.

• buy with credit.

• earn promotions at work.

• buy anything they want.

surplus means that your income is more than your expenses

• True

• False

deficit means that your expanse is more than your income

• True

• False