13 terms

Lesson 14: The Beauty of the Budget

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Terms in this set (...)

annualize
to extrapolate monthly budgets to a yearly estimate.
budget
an estimate of expected income and expenses for a specific period of time.
budget deficit
the amount by which spending exceeds income for a specified period of time.
budget surplus
the amount by which income exceeds expenses for a specified period of time.
category
a grouping of related expenditures such as utilities which includes gas, power and water.
discretionary expenses
costs that are not essential for operation of a household.
expense
an outflow of funds.
income
an inflow of funds.
itemize
to list by item.
mandatory expenses
costs that are necessary for operation of a household and must be paid on a regular basis.
non-recurring expense
a one-time charge; not a regular expense.
recurring expense
a cost that is repeated regularly, often monthly.
variance
the discrepancy between the amount projected to be spent within a category and the actual amount spent.