Ramsey Classroom Chapter 2 Flashcards
1
Q
What is the purpose of a budge
A
The purpose of a budget is to know where your money is going and to be in control of your money
2
Q
What is a budget
A
A budget is plan for how your going to spend your money
3
Q
Components of a budget
A
- The first component of a budget is income.
- Second component is giving
- Third component is saving
- Fourth component is spending
4
Q
Intermittent expense
A
Expense that occurs at various times throughout the year and tends to be in large, lump sums
5
Q
Discretionary (nonessential) expense
A
Expense for things you don’t need
6
Q
What are the four walls
A
Shelter, utilities, transportation, and food
7
Q
Envelope system
A
When you use cash for categories were you tend to overspend
8
Q
A
