Budgeting

Question 1

50/20/30 rule

Answer 1

Put 50% to needs, 30% to wants, and 20% to savings

Question 2

Auto Lease

Answer 2

Type of auto financing; rent a car for certain length of time and miles

Question 3

Budget

Answer 3

Meet expected expenses with expected income

Question 4

Cash envelope budget

Answer 4

Monthly spending money is taken out in cash

Question 5

Cost of living

Answer 5

Amount of money needed to sustain a certain level of living

Question 6

Deduction

Answer 6

Ítem subtracted from paycheck
Ex: SS, HI, FT and ST

Question 7

Down payment

Answer 7

Portion of an items total coat payed at that time

Question 8

Déficit

Answer 8

Expensed exceed income

Question 9

Expenses

Answer 9

Ítem you pay for
Ex: rent, groceries

Question 10

Fixed expense

Answer 10

Price that remains the same, regular intervals

Question 11

Freelancer

Answer 11

Earns money on a per-task, per- job basis

Question 12

Gig economy

Answer 12

Majority of people have short term jobs, rather than long term

Question 13

Gross pay

Answer 13

Total earnings before deductions are taken

Question 14

Income

Answer 14

Money received

Question 15

Needs

Answer 15

Expenses that are essential

Question 16

Net pay

Answer 16

Total earnings after payroll taxes and other deductions have been made; also called take-home pay

Question 17

Pay yourself first

Answer 17

You save a specified amount of your paycheck doing anything with you money

Question 18

Renters insurance

Answer 18

Form of prop. Insurance, covers losses to personal prop.

Question 19

Residential lease

Answer 19

Contract between tent ant and landlord; terms of cost for renting prop.

Question 20

Salary

Answer 20

Fixed amount you are paid, regardless of how many hours you worked

Question 21

Surplus

Answer 21

Income exceeds expenses, NO money left over

Question 22

Unit price

Answer 22

Cost of one item that can be compared to similar products, see the better deal

Question 23

Utilities

Answer 23

Basic services to function ( water, gas, electricity )

Question 24

Variable expenses

Answer 24

Cost appears irregularly, Change in amount

Question 25

Wage

Answer 25

Set amount paid for every hour you work

Question 26

Wants

Answer 26

Expenses to live more comfortable

Question 27

Wealth

Answer 27

Measurement of assets (money saved), minus liabilities

Question 28

Zero-based budget

Answer 28

Every anticipated earning is assigned a role, no leftover money

Question 29

Depreciating asset

Answer 29

Loses value (car)

Question 30

Appreciating asset

Answer 30

Increases in value (real estate)

Question 31

Mortgage escrow acc.

Answer 31

Used to collect and pay prop. taxes and insurance payments on home.

Question 32

Tax lien

Answer 32

Secures the government’s interest in your property when you don’t pay your tax debt.

Consider:
- term
- type of interest
- interest rate

Question 33

Amortization table

Answer 33

Spells out what you’ll be paying each month for your mortgage. How much of principal and interest is paid over time