Words To Know-- Money Budget

When you keep money, and not spend it, so that it adds up to be more and more money, it is called savings. This refers to the act of setting aside a portion of your income or earnings for future use or emergencies. By saving money, individuals can accumulate funds over time and achieve financial goals such as buying a house, starting a business, or retiring comfortably.

Having a budget allows you to effectively manage your finances by tracking your income and expenses. By creating a budget, you can identify areas where you can cut back on spending and allocate your money more efficiently. This enables you to have more money left over at the end of the month, as you are consciously making decisions to spend less and save more. Therefore, the statement that with a budget, you can plan to have more money left over by spending less money is true.

Income refers to the amount of money that a person receives, whether it is from a job, completing a chore, or receiving it as a gift. It is the total earnings that an individual receives, which can be used to cover expenses and make withdrawals.

The beginning balance refers to the total amount of money that a person has at the start. It represents the initial funds available before any transactions or expenses are made. This balance sets the foundation for financial calculations and helps in determining how much money is available to spend or invest.

The ending balance refers to the total amount of money you have after you have added your income or subtracted your expenses. It represents the final amount remaining in your account after all financial transactions have been accounted for.

Scarcity refers to a situation where there is a limited supply of a resource or product, but there is a high demand for it. This means that there is not enough of that particular resource or product to satisfy everyone's needs or wants. Scarcity often leads to competition, higher prices, and the need to make choices about how to allocate the limited resources available.

Expenses refer to the money that you spend, whether it is on things that you need or things that you want. This can include essential items such as food, rent, and bills, as well as discretionary purchases like entertainment or vacations. Expenses are an important aspect of financial management as they need to be budgeted and controlled to ensure financial stability and achieve financial goals.

When you add money to the money that you already have, that is called a deposit. This term is commonly used in banking and finance to refer to the act of putting money into a bank account or investment account. It is the opposite of a withdrawal, which is when you take money out of your account. A deposit is an important step in managing and growing your finances, as it allows you to increase your savings or make investments.

When you take money away from the money that you have and spend it, that is called a withdrawal.

A budget is a record that you keep of your income and expenses. It helps you track and manage your financial resources by providing a detailed plan for allocating your income towards various expenses. By maintaining a budget, you can monitor your spending habits, identify areas where you can save money, and ensure that you are living within your means. Overall, a budget serves as a tool for financial planning and helps you make informed decisions about your money.

A financial goal is when you decide how much money you want to have to use for a specific reason. It involves setting a target amount of money that you aim to achieve in order to fulfill a specific purpose or objective. This can include saving for a vacation, buying a house, or starting a business. Setting financial goals helps individuals prioritize their spending, make a plan, and work towards achieving their desired financial outcomes.