WorksheetsBudgeting Vocab
Total questions: 26
Worksheet time: 13mins
A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment
50/30/20
Budget
50/30/20 Savings
50/30/20 Money
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. Once the time period ends, you either return the car or purchase the car if that is an option in your contract.
Auto Lease
Car rental
Buying a car
The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another
Cost of Living
Expenses
Keeping up with the Jones
Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions
Deductions
Cost of Living
Taxes
Debts
When your expenses exceed your income
Deficit
Bounced Checks
Overdrawn
A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase. The buyer will often take out a loan to finance the remaining balance.
Down Payment
Monthly payment
Cost of purchase
A cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment)
Fixed Expenses
Expenditures
Expenses
Needs
A labor market where the majority of people have short-term jobs or gigs such as freelancing and temp jobs rather than long-term employment
Gig Economy
Job Market
Economy
Total earnings before any deductions are taken
Net pay
Gross pay
Deductions
Take home pay
Money that is received from work, investments, business, etc.
income
investments
refund
benefits
Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay
Net pay
Gross pay
Deductions
A strategy where you save a specified amount of your paycheck before doing anything with the rest of your money
Pay yourself first
Budgeting
Needs vs Wants
Cost of living adjustment
A fixed amount that you are paid over a period of time, regardless of how many hours you work
Salary
Take Home Pay
Hourly wages
Overtime pay
The basic services your home, apartment, or business needs to keep it comfortable and functioning properly (e.g. water, electricity, etc.)
Utilities
Wants
Direct TV
Riviera Utilities
A set amount you are paid for every hour that you work; also called hourly pay
Wage
Salary
A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth
Wealth
Debts
Liabilities
Why is it helpful to track your spending for 2 months?
You can receive higher interest rates for your savings account when you can show how you spend your money
You can receive special discounts at certain stores when you can show how you spend your money
To identify your spending patterns and then prioritize your needs, wants, and savings goals
To eliminate all spending on your wants
Which of the following was NOT one of the budgeting strategies you learned about?
50/30/20
Pay Yourself First
Powerful Methods
True or False: A budget can help you identify any bad spending habits.
True
False
Which of the following are variable expenses (amount can change from month to month)
car payment
entertainment
car insurance
monthly rent
Which of the following is considered a need?
a new car
clothes dryer
a place to sleep
lunch at a local restaurant
Items for which you must spend money are called
net worth
expenses
assets
income
What is the best way to develop a savings plan?
Save as much money as possible without setting clear goals
Don't worry about creating a budget, just save whatever is left over
Only review and adjust the savings plan once a year
Start by setting clear goals, create a budget, cut back on expenses, automate savings, and regularly review and adjust the plan.
What is the main benefit of having a personal budget?
Difficulty in tracking expenses and savings.
Better financial management and goal achievement.
Increased debt and financial instability.
Limited financial freedom and flexibility.
What is the recommended method for tracking expenses?
Memorize all expenses
Keep all receipts in a shoebox
Ask a friend to track expenses for you
Use a budgeting app or software
