Budgeting Unit

Budget

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

• A detailed report of past financial transactions.

• A method for calculating taxes owed to the government.

• A strategy for investing in stocks and bonds.

Wage

• A set amount you are paid for every hour that you work; also called hourly pay.

• A fixed salary paid annually regardless of hours worked.

• A bonus given for exceeding work targets.

• A payment made to employees for overtime hours only.

Variable Expense

• A fixed cost that remains the same each month.

• A cost that appears irregularly or that changes in amount (e.g., utility bills).

• A cost that is always predictable and consistent.

• A one-time expense that does not recur.

Renters Insurance

• A type of insurance that covers losses to personal property for homeowners.

• A form of property insurance that covers losses to personal property for renters and protects against liability claims.

• An insurance policy that only covers the structure of a rented property.

• A type of insurance that is only available for commercial properties.

Auto Lease

• A type of auto financing that allows you to 'rent' a car from a dealership for a certain length of time and amount of miles.

• A method of purchasing a car outright without any financing.

• A type of insurance that covers rental cars only.

• A program that allows you to trade in your car for a new model every year.

50/30/20 Budget

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

• A savings plan that focuses on investing 50% of income in stocks, 30% in bonds, and 20% in real estate.

• A financial strategy that divides income into 50% for entertainment, 30% for groceries, and 20% for utilities.

• A spending plan that suggests using 50% of income for travel, 30% for dining out, and 20% for emergency funds.

Utilities

• Basic services needed for comfort and functionality (e.g. water, electricity)

• Luxury services that enhance lifestyle

• Optional services for entertainment

• Services that are only available in urban areas

Expenses

• Items or services you pay for such as rent, groceries, entertainment, bills, etc.

• A type of income received from investments.

• A financial term for savings accumulated over time.

• A method of budgeting for future purchases.

Fixed Expense

• A cost that varies each month based on usage.

• A cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment).

• A one-time payment that does not recur.

• A cost that is only incurred during specific seasons.

Down Payment

• A fee paid to the seller after the purchase is complete.

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

• An additional charge for financing a loan.

• A deposit made to hold an item before purchase.