| A | B |
|---|
| wants | things we would like to have but not necessary for survival |
| needs | things required for survival including food, water, and shelter |
| mandatory spending | money that must be spent to meet needs in a budget |
| discretionary spending | money spent on wants in a budget |
| fixed expenses | costs that stay the same every month like mortgage or rent |
| variable expenses | costs that change from one month to the next like a water bill |
| budget | a plan for spending money based on income |
| debt | spending more money than comes in as income |
| lease | contract that allows you to use a car for a specified period of time for a monthly payment |
