Budgeting Terms & Vocabulary

What is a deduction?

• Any items subtracted from your paycheck, including taxes and contributions

• When your expenses exceed your income

• A portion of the total cost of an item

• Money set aside for unanticipated expenses

What does the term "deficit" mean?

• A cost that can be expected at regular intervals

• When your expenses exceed your income

• Total earnings before any deductions are taken

• Money received from work or investments

What is a down payment?

• Money set aside for unanticipated expenses

• A portion of the total cost of an item paid at the time of purchase

• Total earnings after payroll taxes

• The lowest income necessary for a worker

What is an emergency fund?

• Money set aside for unanticipated expenses or loss of income

• Total earnings before any deductions are taken

• A form of property insurance for renters

• A strategy to save a specified amount of your paycheck

What are fixed expenses?

• Income that remains the same from week to week

• A cost that can be expected at regular intervals and remains the same amount

• Total earnings after payroll taxes

• The lowest income necessary for a worker

What is gross pay?

• Total earnings before any deductions are taken

• Money received from work or investments

• A strategy to save a specified amount of your paycheck

• Expenses that are essential for living

What is the definition of net pay?

• Total earnings before any deductions are taken

• Total earnings after payroll taxes and other deductions

• Money set aside for unanticipated expenses

• A form of property insurance for renters

What does "pay yourself first" mean?

• A strategy to save a specified amount of your paycheck before spending

• Total earnings before any deductions are taken

• Money received from work or investments

• A form of property insurance for renters

What is renters insurance?

• A form of property insurance for renters covering losses to personal property

• Total earnings after payroll taxes and other deductions

• Money set aside for unanticipated expenses

• A strategy to save a specified amount of your paycheck

What is a fixed amount that you are paid over a period of time, regardless of how many hours you work?

• Surplus

• Wage

• Salary

• Variable Income