Budgeting

Front

What is budgeting?

Back

Budgeting is the process of creating a plan to spend your money, helping you manage your finances effectively.

Front

Why is budgeting important?

Back

Budgeting is crucial to financial success as it helps track income and expenses, ensuring that you live within your means.

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change from month to month, such as rent or mortgage payments.

Front

What is a variable expense?

Back

A variable expense is a cost that can change from month to month, such as groceries or entertainment.

Front

Give an example of a need.

Back

Medical care is an example of a need, as it is essential for health and well-being.

Front

Give an example of a want.

Back

A new smartphone is an example of a want, as it is not essential for survival.

Front

What type of expense is clothing?

Back

Clothing is considered a variable expense because the amount spent can vary each month.

Front

What type of expense is electricity?

Back

Electricity is a variable expense, as the amount can fluctuate based on usage.

Front

Are groceries a fixed or variable expense?

Back

Groceries are a variable expense because the amount spent can change based on needs and choices.

Front

What is the difference between needs and wants?

Back

Needs are essential for survival (e.g., food, shelter), while wants are non-essential items that enhance quality of life.