Budgeting Basics Vocabulary Review

Money that is set aside (not spent) for unexpected expenses that MUST be paid and CANNOT wait.

• Short Term Savings

• Long Term Savings

• Emergency Fund

A plan for spending and saving income during a set period of time.

• 401k Retirement Account

• Net pay

• Budget

• Social Security

Debts you owe for goods (ex. food, games or clothes) and services (ex. hair cut).

• Bills

• Needs

• Income Taxes

• Wants

The various choices/options you have when making a decision about how to spend an amount of money.

• Savings

• Trade-Offs

• Budgets

• Benefits

The idea of "PAY YOURSELF FIRST" could be one way of looking at being sure to put money into saving before putting it in your wants or spending money portion of your budget.

• TRUE

• FALSE

Something you get for making a choice in a trade-off, generally considered a desirable outcome of your choice.

• Opportunity Cost

• Benefit

• Limitation

• Consequence

Any money that comes into your household during a budgeting cycle.

• Income

• Expenses

• Savings

• Debts

Money that is set aside for future short or long term goals or emergencies is called what?

• Allowance

• Needs

• Savings

• Wants

Those things you believe are MOST important to you as well as the world and you are willing to make sacrifices for.

• Core Values

• Assets

• Obstacles

• None of the answers is correct.

Elijah has $100 and decides to spend it on a concert ticket instead of saving it for a new video game. As a result of this choice, Elijah will not be able to buy the video game as soon. This is an example of an ____.

• benefit

• opportunity cost

• savings

• expense