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gov and ec ch 2 study guide (everybody say ty em)
gov and ec ch 2 study guide (everybody say ty em)
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27 Terms
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1
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percentage of Americans that use a budget
35%
2
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components of successful budgeting
income, giving, saving spending
3
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the four walls and their priority in your budget
1. food
2. utilities
3. shelter
4. transportation
4
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how often should you create a budget
every month
5
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what does a budget show you
how much you plan to spend/ are preparing to spend in the future
6
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how does a budget benefit you
pay raise, save more, less stress
7
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budget vs cash flow statement
a budget shows what will happen, a cash flow shows what already happened
8
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how many months does it usually take for your budget to start working as it should
3 months
9
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what does your personality affect
your personal values
10
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percentage of Americans stressed about personal debt
46%
11
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types of expenses and examples of each
fixed - rent/morgage
variable - grocery, gas
intermittent - oil change
discretionary - subscriptions
12
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define net income
money you bring home post taxes
13
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why is tracking your expenses monthly important
14
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what types of money counts as income
any money you earn or save during the month
15
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how can you stay accountable to reach your financial goals
by telling a trusted friend/family member/advisor your money goals and they can help keep you in check
16
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budgeting = freedom because it gives you the _____ to _____
permission; spend
17
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first priority in budgeting
giving
18
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what to do if you overspend in a category in your budget
take money from another category and adjust accordingly
19
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commission
earnings based on a percentage of the sales made
20
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how do you know if you're creating a realistic budget
if you look at previous expenses and compare them or you can see if the budget was accurate at the end of the month
21
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what's the best way to budget
do what's easiest for you
22
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envelope system
putting cash in diff envelopes for various expenses per week or month
23
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describe irregular income and give examples
income that comes in at diff times/amounts (babysitting, mowing the lawn)
24
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what makes it a zero-based budget
you give every single dollar you own an assigned name
25
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how would you adjust your budget to not overspend when there's an unexpected expense
take money from another category
26
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how do cash flow statements work? how do they benefit you?
27
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how can cash-flow help you budget for the next month
it counts as a record for past expenses/it'll show you later down the line what kind of budgeting worked or didn't work for you