consumer economics chapter 2 review

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

commission

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?

stick to a budget, catch errors, and make adjustments

irregular income

income that comes in at different amounts or at different times, or both

commission

earnings based on a percentage of the sales made

cash-flow statement

a record that summarizes all of the income and outgo (spending) over a certain time period

net income

what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay

gross income

the amount you earn before taxes and other payroll deductions

zero-based budget

a cash-flow plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero

discretionary expense

expense for things you don’t need

fixed expense

expense that remains the same