Budgeting and Ret vs Buy Vocab Review

What is a personal budget?

• A personal budget is a term used to describe the amount of money a person spends on personal grooming.
• A personal budget is a document that outlines an individual's career goals.
• A personal budget is a type of loan that individuals can take from a bank.
• A personal budget is a financial plan that helps individuals track their income and expenses.

What is a need?

• A need is a luxury or a desire.
• A need is a requirement or a necessity.
• A need is a burden or a hindrance.
• A need is a want or a preference.

What is a want?

• A want is something that is necessary for survival.
• A want is a feeling of contentment.
• A want is a desire or a wish for something that is not necessary for survival or basic needs.
• A want is a basic need for survival.

When creating a budget, what are total expenses?

• Sum of all costs incurred in a given period
• The average of all costs incurred in a given period
• Total income earned in a given period
• The amount of money saved in a given period

What is the difference between a savings and a checking account?

• A savings account is only for wealthy individuals, while a checking account is for everyone.
• A savings account and a checking account are the same thing.
• A savings account is designed for long-term savings and typically offers a higher interest rate, while a checking account is used for everyday transactions and may have lower or no interest rate.
• A savings account is used for everyday transactions and may have lower or no interest rate, while a checking account is designed for long-term savings and typically offers a higher interest rate.

What is disposable income?

• Amount of money available before taxes and deductions.
• Amount of money earned from investments.
• Amount of money received as a gift or inheritance.
• Amount of money available after taxes and deductions.

What is the difference between a fixed expense and a variable expense?

• A fixed expense is a one-time payment, while a variable expense is recurring.
• A fixed expense is a cost that changes every month, while a variable expense remains the same.
• A fixed expense is a cost that remains the same every month, while a variable expense can change from month to month.
• A fixed expense is a cost that can be controlled, while a variable expense is uncontrollable.

When budgeting your money, what is an emergency expense?

• A non-urgent expense that can be postponed
• A planned expense that is included in the regular budget
• An unexpected and urgent cost that requires immediate attention and cannot be covered by regular budgeted funds.
• A cost that can be covered by regular budgeted funds

What does the term fiscal mean?

• Tax on individuals
• Monetary policy
• Trade deficit
• Government revenue or financial year

What is a lease?

• A lease is a type of loan agreement.
• A lease is a document that grants ownership of a property.
• A lease is a temporary rental agreement between friends.
• A lease is a legal contract between a landlord and a tenant.