Budgeting

Budget

A plan of your expected income and how you will use it to meet your expected expenses over a period of time

Cost of Living

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

Deduction

Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions

Deficit

When your expenses exceed your income

Expenses

Items or services you pay for such as rent, groceries, entertainment, bills,

Fixed Expense

A cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment)

Freelancer

An individual who earns money on a per-job or per-task basis, usually for short-term work. They are not employees of an organization. 

Gig Economy

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

Gross Pay

Total earnings before any deductions are taken 

Income

Money that is received from work, investments, business, etc.

Needs

Expenses that are essential for you to be able to live and function 

Net Pay

Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay

Salary

A fixed amount that you are paid over a period of time, regardless of how many hours you work

Surplus

When your income exceeds your expenses and you have money leftover

Unit Price

The cost for one item or measurement that allows it to be easily compared to other similar products to evaluate which is a better deal

Variable Expense

A cost that appears irregularly or that changes in amount (e.g., utility bills)

Wage

A set amount you are paid for every hour that you work; also called hourly pay

Wealth

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

Wants

Expenses that help you live more comfortably

50/30/20 Budget

A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment

How to find Unit Price

Divide the total cost of a product by the total number of units

Tips to get through a grocery store

• Make a list and commit only to what is on the list

• To keep you focused, listen to music

• Use smaller carts