Budgeting

Short-term financial goals might include

buying movie tickets.

This pie chart shows a sample weekly budget.
In this budget, how much money must go to mandatory expenses?

$35

An expense that is constant each month is called a …expense.

fixed

Which is the best way to achieve long-term financial goals?

Save more money from net income.

Which is an example of income withholdings?

retirement savings

When creating a budget, you must track both your budgeted expenses and your … expenses.

actual

When creating a budget, log fixed expenses

after income.

When should fixed and variable monthly budgeted expenses first be planned?

at the start of each month

What effect would a tax increase have on income?

It would not affect gross income.

Why might variable expenses change a great deal at different times of year?

Heating and cooling costs might vary considerably.

To change gross income, someone would need to

earn more money.

Which of these results in a lower net income?

withholdings

From what part of income should someone take savings?

what otherwise would be discretionary income

In order to stay on track for long term financial goals, money for emergency spending should be taken first from your

discretionary money.

Look at this monthly budget.
Monthly Budget
Next month, Tokuji’s monthly net income will increase to $650. If he increases his savings to $110 a month, how much can he increase his discretionary spending?

$20

Why should someone plan variable expenses after fixed expenses?

Fixed expenses are required and constant, but variable expenses are not required and are more flexible.

Look at this monthly budget.
Monthly Budget
What is the simplest change that can be made to the budget to produce more savings next month?

Decrease food expenses.

To create a balanced budget, one must balance needs against

wants

Paying for transportation to and from work is an example of

a mandatory expense.