1.What is the core characteristic that defines a zero-based budget? 2.Bianca has take-home pay every month of $800. She anticipates having $675 of expenses in August.

3.In a zero-based budget, why is it important that she put the extra $125 in some budget category?

4.Where might you suggest Bianca budget that extra $125? Why?

5.Does using a zero-based budget mean that your bank account will hit $0 at the end of every month? Explain.

Say that Bianca has take-home pay of $800, she budgets every cent out at the start of the month, and she then she needs less gas money than expected in August. She no longer spends the full $65 she budgeted there. What should she do with the leftover?