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Chapter 10
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10.3 Vocab and notes
+Vocabulary
Budget matrix – a chart that shows expenses
+Vocabulary
Pie Chart – shows budget data in percentages
+Vocabulary
Line Graph – shows budget over time
+Bar graph
+Vocabulary
Budget line graph – used to compare 2 categories
+Constructing a Pie Chart
The angles of each sector will add up to 360 degrees
Convert the budget percent to decimal and multiply by 360
Rent 18% 0.18 x 360 = 65o
Transportation 15% 0.15 x 360 = 54o
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10.4 Vocab and Notes
+Vocabulary
Cash flow analysis: is not a budget; it shows how money comes in (income) and goes out (expenses) over time
Fixed expense: the same every month no matter what i.e. rent, car payment
Variable expense: change each month i.e food, gas, clothing
+Vocabulary
Assets: what you own
Liabilities: what you owe
Net worth: assets - liabilities
+Budgeting
Not all bills are monthly Tuition, sewer/water, oil changes
Pro-rate expenses: divide proportionally over 12 months so they are included in the budget
+BudgetingSteps to create a budget:
1.Track expenses – what are you spending your money on?
2.Create budget – how much will you spend?
3.Track your spending – a) Write it down as you spend in each
categoryb) Keep a spreadsheet or use an appc) Envelope system – put cash in an envelope
and spend until done in that category