Lesson 2.1

Key Terms

Budget: a written plan for giving, saving, and spending 

Lesson 2.2

Key Terms

Income: money received for work, as a gift, or through investments

Fixed Expense: expense that remains the same from month to month

Variable Expense: expense that varies in dollar amount from month to month but that you can expect to have every month​​​​​​​

Intermittent Expense: expense that occurs at various times throughout the year and tends to be in large, lump sums​​​​​​​

Discretionary (Nonessential) Expense: expense for things you don’t need 

Lesson 2.3

Key Terms

Zero-Based Budget: a cash-flow plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero

Net Income: what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay​​​​​​​

Gross Income: the amount you earn before taxes and other payroll deductions 

Lesson 2.4

Key Terms

Cash-Flow Statement: a record that summarizes all of the income and outgo (spending) over a certain time period 

Lesson 2.5

Key Terms

Irregular Income: income that comes in at different amounts or at different times, or both

Commission: earnings based on a percentage of the sales made 

Lesson 2.6

Key Terms

No Vocabulary