Budgeting Vocabulary

What is the 50/30/20 Budget method?

• A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment

• A budgeting method that allocates 30% to needs, 50% to wants, and 20% to savings and debt repayment

• A budgeting method that allocates 20% to needs, 30% to wants, and 50% to savings and debt repayment

• A budgeting method that allocates 40% to needs, 30% to wants, and 30% to savings and debt repayment

What is a Cash Envelope Budget?

• A budgeting method where money is saved in a bank account

• A budgeting method where money is placed in labeled envelopes according to budget categories

• A budgeting method where money is invested in stocks

• A budgeting method where money is spent without any categorization

What does 'Deficit' mean in budgeting terms?

• When your income exceeds your expenses

• When your expenses exceed your income

• When your savings exceed your expenses

• When your income equals your expenses

What is a Down Payment?

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

• The full cost of an item paid over time

• A loan taken to cover the cost of an item

• A refund received after purchasing an item

What is a Fixed Expense?

• A cost that varies each month

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

• A cost that is paid only once

• A cost that decreases over time

What is Gross Pay?

• Total earnings before any deductions are taken

• Total earnings after payroll taxes and other deductions

• Money received from investments

• The lowest income necessary for a worker

What is the definition of Income?

• Money received from work, investments, business, etc.

• Total earnings before any deductions are taken

• The lowest income necessary for a worker

• Expenses that are essential for living

What does Living Wage refer to?

• The lowest income necessary for a worker to meet their basic needs

• Total earnings after payroll taxes and other deductions

• A fixed amount paid over a period of time

• When your income exceeds your expenses

What is Net Pay?

• Total earnings after payroll taxes and other deductions have been taken out

• Total earnings before any deductions are taken

• Money received from work, investments, business, etc.

• A strategy to save a specified amount of your paycheck

What is Renters Insurance?

• A form of property insurance for renters covering losses and liability

• A contract between a tenant and a landlord

• A fixed amount paid over a period of time

• The cost for one item or measurement