Budgeting Vocabulary - Unit 1

A budgeting method that allocates 50% to needs, 30% to wants, and20% to savings and debt repayment 

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

A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories. Spending occurs only from the corresponding envelopes.

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 how expensive it is to live in one city versus another.

Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions

When your expenses exceed your income

A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase. The buyer will often take out a loan to finance the remaining balance.

Items or services you pay for such as rent, groceries, entertainment, bills, etc.

A cost that can be expected at regular intervals and that remains the same amount (e.g., monthly rent payment)

Income that remains the same from week to week or month to month.

Total earnings before any deductions are taken.

Money that is received from work, investments, business, etc.

The lowest income necessary for a worker to meet their basic needs

Not having or earning much money.

Expenses that are essential for you to be able to live and function