Kyle just started college. He also decided to establish a personal budget, but he’s unsure of how to categorize his income and expenses. For example, he’s unsure how to categorize the extra money he earns and saves each month. How should it be categorized?

-as earned income
-as a monthly expense
-we unearned income
-as a pre-tax expense

As earned income

The extra money that Kyle earns and saves each month should be categorized as unearned income.