Budgeting Unit Review

When looking at your paycheck, your __________________________ is the amount you were paid before taxes, and your __________________________ is your take-home pay.

• Gross Pay, Net Pay

• Net Pay, Gross Pay

• Taxable Pay, Gross Pay

• Net Pay, Taxable Pay

Paige sets up her budget so that every single dollar is accounted for using the __________________________ strategy.

• Zero-Based Budget

• Envelope System

• 50/30/20 Rule

• Pay-Yourself-First

__________________________ is a budgeting strategy that uses percentages to divide your income into categories.

• 50/30/20 Budget

• Envelope System

• Zero-Based Budget

• Pay-Yourself-First Plan

The __________________________ budget divides your income into needs, wants, and savings.

• 50/30/20 Budget

• Zero-Based Budget

• Envelope System

• Pay-Yourself-First Budget

A(n) __________________________ can change month to month, but a(n) __________________________ costs the same amount every month.

• Variable Expense, Fixed Expense

• Fixed Expense, Variable Expense

• Income, Expense

• Asset, Liability

When a person spends all of their income on living expenses and has nothing left over for anything else they are __________________________ .

• Living Paycheck to Paycheck

• Financially Independent

• Saving for Retirement

• Investing in Stocks

__________________________ is a strategy where individuals prioritize saving by putting a portion of their income into savings before paying other expenses.

• Pay Yourself First

• Zero-Based Budgeting

• Debt Snowball Method

• Envelope System

__________________________ are what we spend our money on.

• Expenses

• Savings

• Investments

• Profits

When creating a budget, it’s important to determine which expenses are __________________________ and which are __________________________.

• necessary; non-essential (or needs; wants)

• fixed; variable (or recurring; one-time)

• large; small (or major; minor)

• predictable; unpredictable (or certain; uncertain)

When you divide your money into separate envelopes this budgeting strategy is called __________________________.

• Envelope Budgeting

• Zero-Based Budgeting

• 50/30/20 Rule

• Pay-Yourself-First