Budgeting + Cognitive Bias

What does a budget track?

• income

• expenses

• Income and expenses

• Savings

What is the purpose of scheduled or automatic payments?

• To delay bill payments

• To ensure bills are paid on time

• To increase bank interest

• To avoid paying bills

What is a direct deposit?

• A cash payment

• A check payment

• Money directly put into your bank account

• A credit card payment

What must everyone have deducted from their paycheck?

• State taxes

• Federal taxes

• Health insurance

• Retirement savings

What is discretionary income?

• Total income before taxes

• Income left after taxes and necessities

• Income saved for retirement

• Income used for bills only

What is disposable income?

• Income before taxes

• Income after taxes and savings

• Income available for spending and saving after taxes

• Income used for investments only

What are fixed expenses?

• Expenses that change monthly

• Expenses that do not change from month to month

• Expenses that are optional

• Expenses that are paid annually

What are variable expenses?

• Expenses that are fixed

• Expenses that can be changed

• Expenses that are unnecessary

• Expenses that are always the same

What is gross pay?

• Pay after taxes

• Pay before taxes

• Pay including bonuses

• Pay after deductions

What is net pay?

• Pay before taxes

• Pay after taxes

• Pay including overtime

• Pay before deductions