Budgeting Vocabulary

Budgeting

A plan for spending money based on income and expenses

Debt

Money that is owed to someone or a company

Emergency Expenses

An unexpected event that requires you to spend money fast

Expenses

The amount of money something costs

Fixed Expense

An amount of money that you pay that does not change monthly or changes very little

Flexible Expense

An amount of money that you pay that does change monthly

Income

Money received through work or investments

Insurance

Monthly payments that protect your car, house, and health in case of an emergency

Mortgage

Monthly payments on a house

Utilities

Monthly payments for heating, water, and electricity