Consumer economics chapter 2

What percentage of Americans actually budget?

35%

What are the four parts of a budget?

Income, giving, saving, spending

What are the four types of expenses?

fixed, variable, intermittent, discretionary

What is a fixed expense?

remains the same each month

What is a variable expense?

Varies in amount from month to month, but ca be expected each month

What is an intermittent expense?

expense that occurs at various times throughout the year. These are usually larger.

What is a discretionary response?

wants, not needs

zero based

when income minus expenses equals zero

cash flow statement

summarizes income and spending over a period of time

commision

earnings based on a percentage of sales made