U4D14

^Wants

• Necessary items for life that are paid monthly/yearly such as food, housing, transportation, utilities, insurances

• Expenses that equal all the fixed and variable expenses added together

• Things or tems that a person would like to own or purchase that is not necessary for life; Ex. entertainment, video games, etc.

• Income from all possible sources

Budget

• Anything that you might incur an expense for

• Is a spending plan for managing your money that includes income and expenses

• All expenses deducted from income before net pay can result.

• Income after all deductions have been paid.

Which person's income will show an increase in the next pay period?

• Chelsea, a tenth grade teacher, who stays after school each day to grade papers

• Mike, a self-employed furniture maker, who works both weekend days to increase his inventory

• Dante, a marketing manager, who works three hours Thursday night so his presentation the next day is perfect

• Susie, a city bus driver, who works two extra shifts to cover for a sick coworker

If Linus is following a 50/30/20 Budget and takes home $1000 per pay period, how much is he budgeting for his WANTS?

• $500

• $300

• $200

• $1000

What are two reasons why having a budget is beneficial? (select two)

• It helps you focus on and achieve financial goals.

• It eliminates the need to monitor your finances.

• It reveals spending patterns and helps prevent overspending.

• It guarantees your financial success.

Todd wants to create a zero-based budget. The first thing he should do is...

• Write down all sources of monthly income.

• Set aside at least 30% of income for savings.

• Create a list of anticipated monthly expenses.

• Track his spending throughout the next month.

According to this method of budgeting, Todd's monthly income minus his monthly expenses should equal what?

• 500

• 100

• 50

• 0

The 50-30-20 Budget rule entails putting 50% into "Needs", 30% into "Wants', and 20% into ____?

• a. Checking

• b. Savings

• c. Stocks

• d. Bonds

An example of a fixed expense would be...

• Water

• Electric

• Mortgage or Rent

• Groceries

Which is a Variable expense?

• Student Loan

• Car loan

• Rent

• Water