Budgeting Vocab

2. Expenses that change in amount from month to month
7. Money that needs to be repaid by the borrower, generally with interest
9. Having more income than expenses
10. Upgrades and other things that would be nice to have but aren’t necessary for living, earning, or protecting what you have
11. Basic things people must have to survive (such as food, clothing, and shelter), resources they need to do their jobs (such as reliable transportation and the tools of the trade), and resources to help build and protect their assets so they can meet future needs (such as emergency savings and insurance)
12. Money you have set aside in a secure place, such as in a bank account, that you can use for future emergencies or to make specific purchases

1. Having more expenses than income
3. Expenses, like bills, that must be paid each month and generally cost the same amount… rent, car payment, insurance premiums, etc
4. When you earn interest on both the money you save and the interest you earn.
5. The practice or arrangement in which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium
6. To commit money to earn a financial return; the strategic purchase or sale of assets to produce income or capital gains
8. A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan