What are some common budgeting terms I should know?

What are some common budgeting terms I should know?

Some common budgeting terms include income, expenses, surplus, deficit, and variable costs. Would you like to know more about any specific term?

What does surplus mean?

Surplus refers to the amount of money that remains after all expenses have been paid. It's a positive balance!

And what about deficit?

A deficit occurs when expenses exceed income, resulting in a negative balance. It's important to manage this to avoid debt.

Can you explain fixed and variable costs?

Sure! Fixed costs are expenses that do not change with production levels, like rent. Variable costs fluctuate based on activity, like utility bills.