Budgeting Vocabulary

What does it mean to budget?

• reevaluating your savings account yearly

• an estimate of income and expenses for a set period of time

• adding up all of your income

• your financial goals

What is net pay?

• Your income before taxes are taken out.

• Your income after taxes are taken out.

What is gross pay?

• Your income before taxes are taken out.

• Your income after taxes are taken out.

What are expenses?

• money received regularly

• things you have to have

• things you want

• the cost required to pay for something

Match the following

• Want

• Something necessary

• Value

• Something unnecessary, but desired

• Need

• Something that is desirable

Money received on a regular basis for work or through investments

• Values

• Taxes

• Income

• Fixed Cost

Required payments to a government

• Variable Cost

• Gross Monthly Income

• Taxes

• Income

Total amount of earnings made over a month before any deductions

• Net Monthly Income

• Gross Monthly Income

• Income Tax

• Social Security

A portion of one's personal income paid to a government (one correct answer)

• Fixed Cost

• Variable Cost

• Income Tax

• Taxes

Taxes are deducted from all employees paychecks

• true
• false