Personal Finance Budgeting Review

Budgeting DefinitionsTypes of Expenses Budgeting Formulas Document Storage Budgeting Potpourri Final Jeopardy

Definitions: 200 Question: Debts you owe. Debts you owe. Answer Liabilities

Definitions: 400 Question: Small, secure storage compartment rented in a bank Small, secure storage compartment rented in a bank Answer Safe Deposit Box

Definitions: 600 Question: Cash and items that can be quickly converted to cash. Cash and items that can be quickly converted to cash. Answer Liquid Assets

Definitions: 800 Question: The difference between the amount you own (assets) and the debts you owe (liabilities). The difference between the amount you own (assets) and the debts you owe (liabilities). Answer Net Worth

Definitions: 1000 Question: Extra money to be spent or saved after taxes and necessities. Extra money to be spent or saved after taxes and necessities. Answer Discretionary Income

Expenses: 200 Question: Expenses that vary from month-to-month Expenses that vary from month-to-month Answer Variable Expenses

Expenses: 400 Question: Expenses that do not change monthly. Expenses that do not change monthly. Answer Fixed Expenses

Expenses: 600 Question: Expenses that are not paid monthly and may vary in cost. Expenses that are not paid monthly and may vary in cost. Answer Periodic Expenses

Expenses: 800 Question: Describe P.Y.F. Describe P.Y.F. Answer Pay Yourself First Whenever you receive money, place some aside to use later.

Expenses: 1000 Question: Provides a small income and other services for the elderly, disabled and orphaned minors. Provides a small income and other services for the elderly, disabled and orphaned minors. Answer Social Security

Budgeting Formulas: 200 Question: Net Worth Net Worth Answer Assets – Liabilities = Net Worth

Budgeting Formulas: 400 Question: Net Cash Flow Net Cash Flow Answer Income – Expenses = Net Cash Flow

Budgeting Formulas: 600 Question: Overtime Rate Overtime Rate Answer Hourly wage x 1.5 = Overtime Rate

Budgeting Formulas: 800 Question: Debt Ratio Debt Ratio Answer Liabilities / Net Worth = Debt Ratio (lower is better!)

Budgeting Formulas: 1000 Question: Liquidity Ratio Liquidity Ratio Answer Liquid Assets / Monthly Expenses = Liquidity Ratio (higher is better!)

Document Storage: 200 Question: Employment Records, Tax Records, Housing Records, Insurance Records Employment Records, Tax Records, Housing Records, Insurance Records Answer Home Files/Filing Cabinet

D Document Storage: 400 Question: Resume, Tax Records, Current/Past Budgets Resume, Tax Records, Current/Past Budgets Answer Home Computer

Document Storage: 600 Question: Your will, birth certificates, valuable collectibles, car titles Your will, birth certificates, valuable collectibles, car titles Answer Safe Deposit Box

Document Storage: 800 Question: Things you own/have value. Things you own/have value. Answer Assets

Document Storage: 1000 Question: The money you have coming in and the money going out. The money you have coming in and the money going out. Answer Cash Flow

Budgeting Potpourri: 200 Question: Trade Off Trade Off Answer Opportunity Cost

Budgeting Potpourri: 400 Question: Total income before deductions are subtracted. Total income before deductions are subtracted. Answer Gross Pay

Budgeting Potpourri: 600 Question: Provides medical insurance to the elderly and to some disabled Americans Provides medical insurance to the elderly and to some disabled Americans Answer Medicare

Budgeting Potpourri: 800 Question: Purpose of the W-4. Purpose of the W-4. Answer Allows the employer to withhold income taxes from employee’s wages to go to the federal government.

Budgeting Potpourri: 1000 Question: Relies on the tax payer for financial support Relies on the tax payer for financial support. Answer Dependent

Final Jeopardy Question: Goal of the zero- based budget. Goal of the zero- based budget. Answer To spend on paper what you intend to earn/spend prior to earning the money. Assign all money to a category.

*The winner of the last round needs to write down how many points you are willing to risk.* If you get the question right, you win those points! If you get it wrong, you lose those points!

*The winner of the last round needs to write down how many points you are willing to risk.* If you get the question right, you win those points! If you get it wrong, you lose those points!