CCFE Budgeting & Personal Finance

What is a budget

plan for spending and saving money

what makes a good budget

realistic, ongoing, clear and easy to use

what are budget categories

income, savings, expenses

what are two types of income and what are they

net, income after taxes and gross, income before taxes

what is an expense

a cost to meet a need or pay a debt

what are the types of savings

emergencies (3-6 months), long-term (house), short-term (vacation)

what are types of expenses

fixed, variable, discretionary

needs vs. wants

needs are essentials, wants are extras

what is a fixed expense

a cost that occurs regularly and doesn’t vary in amount ( i.e. rent, car payment, insurance, etc)

what is a variable amount

a cost that occurs regularly but may vary in amount (i.e. electricity, groceries, telephone, etc )

ways to reduce your grocery bill

shopping list, study ads, buy store brand, avoid impulsive purchases, learn basic prices of foods

what is a discretionary expense

a cost determined by personal wants that may be controlled (i.e. movies, eating out, concerts, etc)

what is a deficit

the amount which expenditures exceed income

expenditures

an amount of money spent

irregular income

money received from gifts, odd jobs, etc

surplus

money that is left over after all expenses have been met

take home pay

money received after all adjustments and deductions are made