Preparing a Budget Flashcards
A spending plan for managing money during a given period of time
Budget
Another term for budget
Spending Plan
An amount of money spent to buy something or do something
Expense
A payroll deduction collected by employers by law and sent to the federal government to support governmental programs
Federal Income Tax
Expenses that cost the same amount every time
Fixed Expenses
The total amount of income from wages before any payroll deductions
Gross Income
an unplanned decision to buy a product or service, made just before a purchase
Impulse buying
Any money you receive
Income
A payroll deduction collected by employers by law and sent to the federal government to provide medical insurance to the elderly and to some disabled Americans
Medicare Tax
Also called “take-home pay”; it’s the amount of income left after payroll deductions.
Net Income
The value of what is given up when you choose one option over another
Opportunity Cost
Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals
Pay Yourself First (P.Y.F.)
Expenses that aren’t paid every month and can be either fixed or variable.
Periodic/Occasional Expenses
Available resources that can be used to satisfy wants and needs
Purchasing Power
The basic economic problem that arises because people have unlimited wants but resources are limited
Scarcity
