Budget Flashcard

Front

What is a budget?

Back

A budget is a financial plan that outlines expected income and expenses over a specific period.

Front

Why is it important to track expenses?

Back

To understand spending habits and make informed financial decisions.

Front

What is income?

Back

Income is money that you earn from work, investments, or other sources.

Front

What is an expense?

Back

An expense is money that you spend on goods and services.

Front

What is the average cost of a bottle of water in Aruba?

Back

$3.08

Front

How much would you spend on bottled water for 7 days if you drink 6 bottles a day?

Back

$129.36

Front

What is the total cost of taking the bus round trip once a day for 7 days in Aruba?

Back

$15.54 a week.

Front

True or False: A budget is a helpful tool for managing finances.

Back

True

Front

What does it mean to overspend?

Back

To spend more money than you have budgeted or can afford.

Front

What is the purpose of a financial plan?

Back

To set financial goals and outline steps to achieve them.