Budgeting and Personal Finance Concepts

These flashcards cover key concepts in budgeting and personal finance, including types of income and expenses as well as budgeting techniques.

What is your biggest wealth-building tool?

Income

When creating your monthly budget, what is the first priority under 'Expenses'?

Saving

What will tracking expenses help you do?

stick to budget, catch errors, make adjustments

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

Give every dollar a name on paper on purpose (Income - Expenses = ZERO)

What impacts your Net Income?

Taxes and withholdings

What type of expense is the cost of groceries and gas?

Variable Expense

How should you budget with irregular income?

Prioritize expenses from most to least important.

What is an example of an expense that should be evaluated in light of other expenses?

Discretionary Expense

What is a Fixed Expense?

An expense that stays the same from month to month.

What does a Zero-Based Budget account for?

Fixed, variable, intermittent, and discretionary expenses based on income.

What is Gross Income?

The amount you earn before taxes and payroll deductions.

What is a written plan for giving, saving and spending called?

Budget

What is an Intermittent Expense?

An expense that occurs at various times throughout the year and tends to be large lump sums.

What is a Cash Flow Statement?

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

What constitutes income?

Money received from work, as a gift or through investments.

What are earnings based on a percentage of the sales you make called?

Commission.