Chapter 03 - Budgeting

Question 1

A written cash flow plan.

Answer 1

Budget

Question 2

The act of matching your bank statement with your checkbook.

Answer 2

Reconcile

Question 3

A cash flow plan that assigns an expense to every dollar of your income, so that the total income minus the total expenses equal zero.

Answer 3

Zero Based Budget

Question 4

An item that is bought without previous planning or consideration of the long-term effects.

Answer 4

Impulse Purchase

Question 5

Occurs when money is withdrawn from a bank account and the available balance goes below zero.

Answer 5

Overdraft

Question 6

Series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses.

Answer 6

Envelope System

Question 7

A summary that shows total income and spending for a given period of time.

Answer 7

Cash Flow Statement

Question 8

A copy of each check you write.

Answer 8

Carbon Check