Intro to Business - Ch 28 Review

A general increase in the cost of goods and services

A plan for using your income in a way that best meets your wants and needs

Gross pay is the amount of money you have left after all deductions have been made.

A budget should never be revised or changed.

A risk that pay can go up or down (losing your job)

A budget includes all of the following except

When an airline sells more tickets than it has available seats

Money management is necessary for what groups?

Food, gifts, and entertainment are examples of a

A method of planning to get the most from one's money is known as

The ability to convert a financial resource into cash quickly

An advanced commitment to receive a services at a later time

Which of the following is the first step in personal financial planning?

Gross pay and net pay are the same thing.

Choices you make such as flying or driving

When more money is spent than earned

Income includes the money you earn such as take-home pay, and investment income.

If you want to increase your savings

Budgets record fixed expenses only.

Things of value you own

Things of value minus the amount owed on items

What you give up when you make one choice instead of another.

Extra money in your budget that can be saved or spent

This can go up or down and affects the cost of borrowing and what you earn when you save/invest

Things you still owe money on

Which of the following is the last step in personal financial planning?

You must plan for expenses, even the unexpected expenses.

Rent and car payments are examples of 

A budget can help you decide which short term or long term goals you can meet.

A good budget helps people set priorities for spending and saving and tracks their money.