Budgets Flashcards
What two things does a budget compare?
Income and Expenses
The idea of a budget is to spend exactly as much as you get.
True or false?
False
Which is an example of a fixed expense?
Mention one.
A cell phone bill is a good example
Why is it a good idea to save receipts and not throw them away?
Explain
Saving receipts allows you to keep an accurate record of your spending.
Variable expenses may not be the same every month.
True or false?
True
When you set a budget, you should never revisit or adjust it.
True or false?
False
This occurs when money is withdrawn from a bank account and the available balance goes below zero.
Concept.
overdraft
This is a series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses
Concept.
an envelope system
You match your bank statement with your checkbook balance in order to balance or __________ your account.
Fill in the gap.
reconcile
Expenses that stay the same every month are _________ expenses. Rent would be an example.
Fill in the gap.
fixed
An expense that only occurs because you are choosing to spend money like eating out or buying clothes is a(n) ___________ expense.
Fill in the blank
discretionary
You have to eat so you need to buy groceries. This is a(n) ___________ expense.
Fill in the blank
variable
Car repairs are a fact of life and should be budgeted. This is a(n)_________ expense.
Fill in the gap
intermittent
What percentage of Americans live paycheck to paycheck?
A number.
70
Which account record would have the most current balance?
your own checkbook register
