Finance Vocab 1

A budgeting method that allows an individual to spend 50 percent on needs, 30 percent on wants, and 20 percent on savings.

• Variable Expense

• 50-30-20

• Savings Account

• Investment

A specific amount of money you aim to save for a particular purpose, like buying a new phone or saving for college.

• Piggy Bank

• Savings Goal

• Emergency Fund

• Discretionary Spending

A plan for income and expenses during a set period

• Fixed Expenses

• Budget

• Portfolio

• Bank Account

Regular, predictable expenses that are the same amount each time, like rent or a monthly subscription.

• Variable Expense

• Debt

• Fixed Expenses

• Need

What is a good habit to start saving money?

• Buying everything you want

• Waiting for a sale to buy something

• Putting a little money aside regularly

• Only saving money on your birthday

Expenses that can change in amount each time, like grocery bills or electricity costs.

• Sales

• Variable Expenses

• Checking Account

• Savings Account

Discretionary Spending

• Spending little at the store

• Money spent on non-essential items or activities that you enjoy, like eating out or buying video games.

• Saving money for just sales at the store

• A financial goal

Something an individual must have to survive.

• Debt

• Needs

• Food

• Water

Something an individual would like to have.

• More money

• Money

• Wants

• Shoes

The amount of money you owe to a lender you’ve borrowed from.

• Loan Officer

• Debt

• Interest

• Bank