Financial Literacy Unit 2

Taxes and withholdings impact your [blank], which is the amount of money you take home on your paycheck.

Net Income

The cost of groceries and gas is considered a(n) [blank] .

Variable Expense

To budget with a(n) [blank] , prioritize expenses from most to least important so your most important expenses are covered first.

Irregular Income

A(n) [blank] needs to be evaluated in light of your other expenses for the month.

Discretionary Expense

A(n) [blank] stays the same from month to month.

Fixed Expense

A(n) [blank] should account for fixed, variable, intermittent, and discretionary expenses based on income.

Zero-Based Budget

A budget doesn’t tell you not to spend. A budget actually

gives you permission to spend

The envelope system is especially helpful for expenses like

groceries, eating out, etc

The three priorities in your budget, after listing income, are

giving, saving, spending

Specific categories are important to consider when creating a budget so you can

know what you are spending on

What’s it called when you make money on the percentage of the total sales you make?

Commission

Which of the following is not a type of discretionary expense?

Depreciation

What‘s your biggest wealth-building tool?

Income

When you’re creating your monthly budget, what’s the first priority under ”Expenses“?

Giving

If you approach money with a generous spirit, you‘ll be:

More Grateful

What will tracking expenses help you do?

All of these (Stick to a budget, Catch errors, Make adjustments)

What‘s a zero-based budget, and why is it important?

A zero-based budget is when you subtract your expenses from your income, and it should equal zero. It's also a way to see your money and give every dollar a job so that you can focus on where your money needs to go, prioritize the important ones, and avoid debt

Fixed Expense: 

expense that remains the same from month to month

Variable Expense:

expense that varies in dollar amount from month to month but that you can expect to have every month​​​​​​​

Intermittent Expense:

expense that occurs at various times throughout the year and tends to be in large, lump sums​​​​​​​

Discretionary (Nonessential) Expense:

expense for things you don’t need