Budget

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What is a budget?

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A budget is a financial plan that outlines expected income and expenses over a specific period, helping individuals manage their money effectively.

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True or False: A budget is a helpful tool.

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True

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What is considered a 'Need' in budgeting?

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A 'Need' is an essential expense that cannot be cut from your budget, such as housing, food, and healthcare.

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What is considered a 'Want' in budgeting?

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A 'Want' is a non-essential expense that can be cut from your budget to save money, such as entertainment or luxury items.

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What is 'Interest' in the context of loans?

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Interest is an additional fee charged by lenders for borrowing money, typically expressed as a percentage of the loan amount.

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True or False: A budget helps you save money for the things you really want.

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True

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What is a Fixed Expense?

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

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What is a Discretionary Expense?

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A Discretionary Expense is a non-essential expense that can be adjusted or eliminated, such as dining out or subscription services.

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What is the purpose of creating a budget?

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The purpose of creating a budget is to track income and expenses, ensure financial stability, and help achieve financial goals.

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What is the difference between income and expenses?

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Income is the money received, while expenses are the costs incurred for goods and services.