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Budgets help people control spending, prepare for emergencies, reduce financial
The process of forecasting future income and expenses is called
A cash flow statement shows money coming in called cash
Salary, wages, gifts, and lottery winnings are examples of cash
Rent, food, insurance, and transportation are examples of cash
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Net Cash Flow = Cash Inflow − Cash
If someone earns $2,950 and spends $2,800, they have a surplus of
A personal balance sheet shows assets, liabilities, and
Assets are things you
Liabilities are money you
Homes, savings accounts, and investments are examples of
Credit card balances, mortgages, and student loans are examples of
Net Worth =
Liquidity refers to how quickly something can be converted into
Checking and savings accounts are considered very
Houses and cars are considered
Needs are essential expenses required for survival and daily
Streaming services, concerts, and gaming are examples of
Discretionary income is the money left after paying for
Opportunity cost is what you
Financial goals that take less than one year are called
Retirement is an example of a __________ -term financial goal.
SMART goals are Specific,
The 50/30/20 budget recommends spending 50% on
In the 50/30/20 budget, 20% goes toward savings and debt
In a zero-based budget, every dollar is assigned a
Envelope budgeting is also known as cash
The “Pay Yourself First” method treats
Rent and mortgage payments are examples of
Groceries and entertainment are examples of
Electricity bills are considered variable expenses because usage changes
Moving to a cheaper apartment could reduce
Eating out less mainly reduces
Good financial habits include tracking spending, saving regularly, reducing unnecessary expenses, paying off debt, and
Budgeting helps people avoid unnecessary
If someone consistently goes over budget, they should first reduce unnecessary
Canceling