Econ: Budgeting 101 Vocabulary
QUESTIONS AND ANSWERS
1. Borrowing - ANSWER-Taking cash with a promise to pay off the money inside the
future.
2. Budget - ANSWER-An itemized summary of probable income and charges for a
given period. A price range is a plan for coping with income, spending, and saving
in the course of a given time period.
3. Discretionary income - ANSWER-The element of private income available for
spending after taxes and primary necessities have been deducted.
4. Disposable earnings - ANSWER-The quantity of someone's paycheck this is
available to spend or store.
5. Expenditures - ANSWER-Money spent to shop for items and services.
6. Expenses - ANSWER-The expenses humans incur for goods and offerings.
Expenses are often categorized as fixed, variable, and periodic. Fixed costs are
people who occur every month in a everyday quantity, such as lease, car
payments, and loan payments. Variable prices are those who exchange from one
time period to the subsequent, such as meals, clothing, fuel, and leisure. Periodic
charges are those who arise several times a year, including automobile coverage
and lifestyles insurance payments.
7. Gross pay - ANSWER-The amount people earn in line with pay duration before any
deductions or taxes are paid.
8. Income - ANSWER-The charge human beings acquire for offering sources inside
the marketplace. When people paintings, they offer human resources (exertions)
and in exchange they acquire income inside the shape of wages or salaries.
People additionally earn income within the sorts of lease, income, and hobby.
9. Loan - ANSWER-A amount of money furnished quickly on the condition that the
quantity borrowed be repaid, usually with interest.
10.Nest egg - ANSWER-An amount of cash stored for a special occasion, inclusive of
retirement or buying a house.
11.Net pay - ANSWER-Gross pay minus deductions and taxes.
12.Payroll deduction - ANSWER-Amounts subtracted from gross pay.
13.Salary - ANSWER-Income earned for imparting human sources (hard work) in the
marketplace. Salaries are normally an annual quantity paid month-to-month or
bimonthly for a distinctive wide variety of hours, usually forty hours according to
week.
14.Save - ANSWER-Keeping your cash to spend inside the future.
15.Saving - ANSWER-Not spending on modern intake or taxes. Saving includes giving
up a few modern-day consumption for destiny intake.
16.Savings account - ANSWER-An account with a bank or credit union in which human
beings can deposit their money for future use and earn hobby.
QUESTIONS AND ANSWERS
1. Borrowing - ANSWER-Taking cash with a promise to pay off the money inside the
future.
2. Budget - ANSWER-An itemized summary of probable income and charges for a
given period. A price range is a plan for coping with income, spending, and saving
in the course of a given time period.
3. Discretionary income - ANSWER-The element of private income available for
spending after taxes and primary necessities have been deducted.
4. Disposable earnings - ANSWER-The quantity of someone's paycheck this is
available to spend or store.
5. Expenditures - ANSWER-Money spent to shop for items and services.
6. Expenses - ANSWER-The expenses humans incur for goods and offerings.
Expenses are often categorized as fixed, variable, and periodic. Fixed costs are
people who occur every month in a everyday quantity, such as lease, car
payments, and loan payments. Variable prices are those who exchange from one
time period to the subsequent, such as meals, clothing, fuel, and leisure. Periodic
charges are those who arise several times a year, including automobile coverage
and lifestyles insurance payments.
7. Gross pay - ANSWER-The amount people earn in line with pay duration before any
deductions or taxes are paid.
8. Income - ANSWER-The charge human beings acquire for offering sources inside
the marketplace. When people paintings, they offer human resources (exertions)
and in exchange they acquire income inside the shape of wages or salaries.
People additionally earn income within the sorts of lease, income, and hobby.
9. Loan - ANSWER-A amount of money furnished quickly on the condition that the
quantity borrowed be repaid, usually with interest.
10.Nest egg - ANSWER-An amount of cash stored for a special occasion, inclusive of
retirement or buying a house.
11.Net pay - ANSWER-Gross pay minus deductions and taxes.
12.Payroll deduction - ANSWER-Amounts subtracted from gross pay.
13.Salary - ANSWER-Income earned for imparting human sources (hard work) in the
marketplace. Salaries are normally an annual quantity paid month-to-month or
bimonthly for a distinctive wide variety of hours, usually forty hours according to
week.
14.Save - ANSWER-Keeping your cash to spend inside the future.
15.Saving - ANSWER-Not spending on modern intake or taxes. Saving includes giving
up a few modern-day consumption for destiny intake.
16.Savings account - ANSWER-An account with a bank or credit union in which human
beings can deposit their money for future use and earn hobby.
