Unit 1 Budgeting Flashcards
(12 cards)
What are fixed costs?
Costs that stay the same each month, like rent and car payments.
What are variable costs?
Costs that change month to month, like food and entertainment.
What is zero-based budgeting?
A budgeting method where every dollar is assigned a job and income minus expenses equals zero.
What is the 50/20/30 Rule?
50% to needs, 20% to savings, and 30% to wants.
What’s the goal of an emergency fund?
To cover 3–6 months of living expenses.
How much of your income should you save to build an emergency fund?
At least 20%.
What are 3 ways to save money on groceries?
Use unit pricing, plan meals, and shop with a list.
What upfront costs are common when renting?
First and last month’s rent plus a security deposit.
What might landlords require before you rent?
Proof of income and a credit check.
When is public transportation a better option?
In urban/city areas.
When is owning a personal vehicle more necessary?
In rural areas.
What’s the difference between wants and needs?
Needs are essential for living/working; wants are lifestyle enhancers.
