Unit 1 Vocabulary

What is a budget?

• A method of saving money for future use

• A plan of your expected income and how you will use it to meet your expected expenses over a period of time

• A list of all your monthly expenses

• A summary of your past spending habits

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Which of the following best describes a cash envelope budget?

• A budgeting method where all transactions are done online

• A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories

• A budgeting method that uses credit cards for all expenses

• A budgeting method that involves investing in stocks

What is meant by the term "cost of living"?

• The amount of money needed to buy luxury items

• The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare

• The amount of money spent on entertainment and travel

• The amount of money saved for retirement

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

What is a deduction in terms of a paycheck?

• An additional bonus added to your salary

• Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance, or 401(k) contributions

• A reward for working overtime

• A tax refund

What does a deficit indicate in a budget?

• When your income exceeds your expenses

• When your expenses exceed your income

• When your savings are equal to your expenses

• When your income and expenses are balanced

Tags

CCSS.6.NS.C.5

What is a down payment?

• A full payment made at the time of purchase

• A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase

• A monthly installment payment

• A refundable deposit

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

What is the difference between gross pay and net pay?

• Gross pay is after deductions, net pay is before deductions

• Gross pay is before deductions, net pay is after deductions

• Gross pay includes bonuses, net pay does not

• Gross pay is the same as net pay

What does "pay yourself first" mean in budgeting?

• Spend all your money before saving

• Save a specified amount of your paycheck before doing anything with the rest of your money

• Pay all your bills before saving

• Invest all your money in stocks

What is renters insurance?

• Insurance that covers the building structure

• A form of property insurance that covers losses to personal property and protects the insured person from liability claims

• Insurance that covers only theft

• Insurance that covers only natural disasters

What is a zero-based budget?

• A budget where you save all your income

• A budgeting method where every anticipated earning is assigned a role to be spent, saved, or invested somewhere, so there's no 'leftover' money with no purpose

• A budget that only tracks expenses

• A budget that only tracks income