Unit 2 Budgeting Vocabulary Test

A plan of your expected income and how you will use it to meet your expected expenses over a period of time

• budget

• deduction

• cost of living

• wealth

A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories. Spending occurs only from the corresponding envelopes.

• 50/30/20 budget

• zero-based budget

• cash envelope budget

• cost of living

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another

• cost of living

• wealth

• defiict

• wealth

When your expenses exceed your income

• surplus

• deficit

• salary

• pay yourself first

A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase. The buyer will often take out a loan to finance the remaining balance.

• loan amount

• down payment

• wealth

• budget

Items or services you pay for such as rent, groceries, entertainment, bills, etc.

• income

• wages

• expenses

• cost of living

A labor market where the majority of people have short-term jobs such as freelancing and temp jobs rather than long-term employment

• gig economy

• freelancher

• residential

• full-time employment

A budgeting method where every anticipated earning is assigned a role to be spent, saved, or invested somewhere, so there's no "leftover" money with no purpose

• 50/30/20 budget

• zero based budget

• cash envelope budget

A form of property insurance that covers losses to personal property and protects the insured person from liability claims is called a residential lease.

• True

• False

Expenses that help you live more comfortably, these are things that make life fun

• needs

• wants

• variable expenses

• fixed expenses