AFC Module 9 - Spending Plans

Question 1

Budget

Answer 1

paper or electronic document used to record both planned and actual income and expenditures over a period of time

Question 2

Budget variance

Answer 2

difference between amount budgeted and actual amount spent or received.

Question 3

Envelope system

Answer 3

placing exact amounts into envelopes for each budgetary purpose.

Question 4

Revolving savings account

Answer 4

variable budgeting tool that places funds in savings to cover irregular or higher-than-usual expenses.

Question 5

Subordinate budget

Answer 5

detailed listing of planned expenses within a single budgeting classification

Question 6

Surplus (or deficit if negative)

Answer 6

amount remaining after all expenses are subtracted from income

Question 7

Take-home pay (disposable income)

Answer 7

pay received after employer withholdings for such things as taxes, insurance, and union dues, that is available for budgeting, including spending, saving, investing, and donating.