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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