Chapter 3~Household Budgeting Flashcards
1
Q
Budgeting?
A
The process of matching our expected income with our expected expenditure for a particular period
2
Q
Net cash?
A
Total income minus total expenditure
3
Q
Unbranded?
A
Goods that are not made by a well-known manufacturer
4
Q
Budget surplus?
A
When our expected income is greater than our expected expenditure
5
Q
Budget deficit?
A
When our expected income is less than our expected expenditure
6
Q
3 reasons a household prepares a budget
A
- helps avoid impulse buying
- to identify the months where there will be a budget deficit
- to identify any months that there will be a lot of bills coming in
7
Q
3 ways you can deal with a budget deficit
A
- cut down on diversionary items
- find cheaper alternatives to our current bills
- spread bills to monthly payments
8
Q
Budget?
A
A plan of our expected income and our expected expenditure for a particular period
