Personal Finance Vocab 1 Flashcards
1
Q
Living paycheck to paycheck
A
Only have enough money for your needs
2
Q
Budget
A
Financial plan based on ones expected income and expenses
3
Q
Down Payment
A
Initial first payment; more money you initially pay less money you pay monthly
4
Q
Fixed expense
A
The amount you pay per month does not change
o Rent, utilities
5
Q
Variable expense
A
The amount you pay changes
o Clothing, entertainment
6
Q
What does SMART stand for?
A
o Specific, measurable, attainable, relevant, time-bound
7
Q
Value
A
best quality, best price
8
Q
50, 30, 20 rule
A
Recommends to be spending 50% on your needs, 30% on your wants, and 20% on your savings
