vocab 3

Question 1

Zero based budget

Answer 1

financial plan where every anticipated earning is assigned a role to be spent, saved, or invested somewhere, so there’s no left over money with no purpose

Question 2

cost of living

Answer 2

The amount of money needed to sustain a certain level of living, including basic
expenses such as housing, food, taxes, and healthcare; often used when comparing
now expensive luis to live In one cy versus another

Question 3

benefits

Answer 3

an advantage or something that helps you

Question 4

fixed expense

Answer 4

cost that can be expected at regular intervals and that remains the same amount

Question 5

insurance

Answer 5

a risk management tool that protects an individual from specific financial losses
under specific terms and premium payments, as described in a written policy
document.

Question 6

cash flow

Answer 6

money that goes in and out of your wallet and account

Question 7

income

Answer 7

money that is earned from work, investments, business

Question 8

salary

Answer 8

a fixed amount of money paid to an employee for each pay period

Question 9

personal finance

Answer 9

the principles and methods that individuals use to acquire and manage income and assets

Question 10

unit price

Answer 10

the cost for one item or measurement that allows it to be easily compared to other products to evaluate which is a better deal

Question 11

net pay

Answer 11

total earning after payroll taxes and other deductions

Question 12

deficit

Answer 12

when ur expenses exceed your income

Question 13

wants

Answer 13

nonessential purchases a person wants to feel happy, make life convenient, fit in with peers

Question 14

expenses

Answer 14

products, services, or bills you are responsible for paying

Question 15

variable expenses

Answer 15

costs that appear irregularly or that change in amount

Question 16

budget

Answer 16

a plan of your expected income and how you will use it to meet your expected expenses over a period of time

Question 17

investing

Answer 17

to put money to use by buying a part of something so , that you may have profitable returns

Question 18

wage

Answer 18

amount of money paid to an employee at a specific rate per hour worked

Question 19

deduction

Answer 19

any items subtracted from your paycheck, including state and federal income taxes, social security, health insurance or 401k

Question 20

costs

Answer 20

price paid to get a good or service

Question 21

freelancer

Answer 21

an independent contractor who provides a specific service for a certain period of time so after that service is fulfilled they no longer work with the company

Question 22

scarcity

Answer 22

shortness of supplies

Question 23

wealth

Answer 23

total value of money and other assets , minus debts

Question 24

gross pay

Answer 24

total earning before deductions are taken

Question 25

needs

Answer 25

purchases a person must have to live or succeed or bills that must be paid to remain in good standing

Question 26

surplus

Answer 26

when your income exceeds your expenses and you have money left over

Question 27

pay yourself first

Answer 27

to automatically save a specified amount from your paycheck before budgeting it into any other category

Question 28

financial security

Answer 28

financial freedom from doubt, anxiety, and fear; confident backup of funding in the form of assets or savings which can be used in a time in need

Question 29

financial literacy

Answer 29

the ability to use knowledge and skills to manage one’s financial resources effectively for a lifetime of financial security

Question 30

emergency fund

Answer 30

money set aside specifically for an emergency