WorksheetsUnit 3 Budgeting Vocabulary
Total questions: 18
Worksheet time: 9mins
A breakdown of your income and expenses for a set period of time
Budgeting
Needs
Income
Bills
An amount of money owed for goods or services
Bill
Coupons
Allowance
Deduction
Things you have to have; these are essential
Needs
Wants
Gross Pay
Expenses
Things you would like to have; they are not absolutely necessary, but they would be nice to have
Wants
Needs
Net Pay
Bills
Money received on a regular basis
Income
Expenses
50/30/20 Rule
Budget
The cost required to pay for something
Expenses
Savings
Income Taxes
Allowance
Putting aside money for the future
Savings
Gross Pay
Wants
Pay Stub
The amount of money you receive in your paycheck before any deductions or taxes are taken out.
Gross Pay
Net Pay
Pay Stub
Budget
The amount of money you receive in your paycheck after any deductions or taxes are taken out; take home pay
Net Pay
Gross Pay
Income Tax
Pay Yourself First
A document that is given to a worker with each paycheck and that shows the amount of money earned and the amount that was removed for taxes
Pay Stub
Income
Needs
Bills
A budgeting technique where 50% of your paycheck is spent on needs, 30% on wants, and the last 20% on savings.
50/30/20 Rule
Pay Yourself First
Savings
Allowance
A tax on the income of a person or business
Income Tax
Government Spending
Expenses
Bills
Federal budget that is approved by Congress
Government Spending
Income Tax
Allowance
Deductions
An amount of money paid regularly to a person (Different from Income)
Allowance
Budget
Savings
Wants
A saving strategy where you put a fixed amount of money into a savings account immediately after receiving your paycheck, rather than waiting until the end of the month to save what's left.
Pay Yourself First
Wants
Needs
Net Pay
The two main portions of a budget are...
the money coming in (income) and the money you're spending (expenses)
the money coming in (expenses) and the money you're spending (income)
the cash you are spending in stores and the bills you are paying online
the items you want to buy and the money you need to save for retirement
9) Why should you use your NET pay when creating a budget?
Your net pay will always be higher, so you'll have more money to spend
Your net pay is a more accurate picture of how much money you have available to spend or save
Your employer knows what your gross pay is, but you only know what your net pay is
Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget
13) Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?
50% needs, 30% wants, 20% savings
50% budget, 30% needs, 20% wants
50% saving, 30% needs, 20% wants
$50 needs, $30 wants, $20 savings
