1.16 Flashcards
(20 cards)
What are fixed expenses?
Fixed expenses are the same amount every time, such as rent and minimum charges on a mobile phone plan.
Examples include mortgage payments and utility bills.
What are variable expenses?
Variable expenses change over time, such as entertainment or clothing purchases.
Examples include dining out or buying new clothes.
What is the secret to managing money?
The secret to managing money is to keep accurate records of income and expenses, monitor your balance, and minimize expenses.
This helps in understanding spending habits and saving effectively.
How much does Sasha earn per week?
$1900 per week.
Sasha has a job with Telstra.
How much does Lizzy earn per week?
$1050 per week.
Lizzy works as a manager in a retail store.
What is Sasha’s approach to managing money?
Sasha enjoys spending money after paying her bills and does not worry much about tracking expenses.
She checks her account balance when withdrawing money.
What is Lizzy’s approach to managing money?
Lizzy keeps detailed records of her income and expenses and regularly checks her savings.
She uses a folder on her laptop for financial documents.
What is the first step in creating a budget?
Calculate your total income.
This includes all income sources that you expect to receive.
What types of expenses should be recorded in a budget?
Expenses should be divided into fixed and variable.
Fixed expenses remain constant, while variable expenses can fluctuate.
What should you do if your total expenses exceed your total income?
You need to cut back on expenses or increase your income.
This may involve modifying fixed expenses or reducing variable ones.
What did Talat Malik’s budget show for total income over three months?
$3150.
This included wages and interest.
What was Talat’s total savings after three months?
$500.
She saved $200 in January and $150 in February and March.
What is one reason people save money?
People save for various reasons, such as for emergencies, retirement, or major purchases.
Saving provides a sense of security and satisfaction.
What is superannuation?
Superannuation is a compulsory savings scheme for retirement in Australia.
It involves contributions over a working life, leading to a lump sum or pension at retirement.
What are retail funds in superannuation?
Retail funds are run by banks or investment companies and offer many investment choices while keeping some returns as profit.
They are designed for individual investors.
What are industry funds in superannuation?
Industry funds usually offer less choice, but profits are returned to members.
Originally, many were trade union based.
Fill in the blank: Sasha’s total income is $______ per week.
$1900
Fill in the blank: Lizzy’s savings after expenses last week were $______.
$480
True or False: Lizzy checks her account balance only when withdrawing money.
False.
Lizzy checks her balance monthly against her records.
What is one important practice for managing finances responsibly?
Set up a budget and monitor spending.
Regularly updating financial records is also crucial.
