Personal Finance, Weeks 3-4 (Budgeting)

A budget is...

• an estimate of expected income and expense for a given period

• money received, especially on a regular basis, for work or through investments

• the cost required for something; the money spent on something

• the amount of money held in an account at any given moment

Income is...

• an estimate of expected income and expense for a given period

• money received, especially on a regular basis, for work or through investments

• the cost required for something; the money spent on something

• the amount of money held in an account at any given moment

Expense is...

• an estimate of expected income and expense for a given period

• money received, especially on a regular basis, for work or through investments

• the cost required for something; the money spent on something

• the amount of money held in an account at any given moment

A balance is...

• an estimate of expected income and expense for a given period

• money received, especially on a regular basis, for work or through investments

• the cost required for something; the money spent on something

• the amount of money held in an account at any given moment

Zero Budgeting is...

• A budgeting strategy in which your income minus your expenses (including savings) equals zero.

• A budgeting strategy in which you divide cash into separate envelopes, or categories, to help make spending decisions. 

• A budgeting strategy in which you first put money into your savings and investments, then spend only what is left.

Envelope Budgeting is...

• A budgeting strategy in which your income minus your expenses (including savings) equals zero.

• A budgeting strategy in which you divide cash into separate envelopes, or categories, to help make spending decisions. 

• A budgeting strategy in which you first put money into your savings and investments, then spend only what is left.

Pay Yourself First Budgeting is...

• A budgeting strategy in which your income minus your expenses (including savings) equals zero.

• A budgeting strategy in which you divide cash into separate envelopes, or categories, to help make spending decisions. 

• A budgeting strategy in which you first put money into your savings and investments, then spend only what is left.

What is Reverse Budgeting?

• A budgeting mindset in which you put your savings goals before your expenses.

• A budgeting mindset in which you put your expenses before your savings goals.

• A budgeting mindset in which you first calculate your expenses, then find employment that can pay for those expenses.

• A budgeting mindset in which you first calculate your expenses, then calculate how much you need to save, then allow yourself to spend everything leftover

Which of these is NOT a type of reverse budgeting?

• Zero Budgeting

• Envelope Budgeting

• Pay Yourself First Budgeting

• Activity-Based Budgeting

An Emergency Fund is...

• A stash of easily accessible money used to pay for unplanned expenses.

• A stash of money kept in a retirement account.

• A stash of easily accessible money used to pay for planned expenses.

• a credit card.