14 terms

Budgeting

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Budget
A plan of your expected income and how you will use it to meet your expected expenses over a period of time
Cost Of Living
The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another
Deduction
Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions
Deficit
When your expenses exceed your income
Expenses
Products, services, or bills you are responsible for paying
Fixed Expense
Cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment)
Gross Pay
Total earnings before any deductions are taken
Income
Money that is earned from work, investments, business, etc.
Needs
Purchases a person must have to live or succeed or bills that must be paid to remain in good standing
Net Pay
Total earnings after payroll taxes and other deductions; also called take-home pay
Paycheck Stub
A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.
Surplus
When your income exceeds your expenses and you have money leftover
Variable Expense
Cost that appears irregularly or that changes in amount (e.g., utility bills)
Wants
Nonessential purchases a person wants to feel happy or on par with their peers
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