Personal Finance

Income is...

• money earned

• money spent

• money that is given away

Expenses/expenditures are...

• money saved

• money earned

• money spent

What does it mean to have a balanced budget?

• Income is equal to or more than the expenditures.

• Expenditures are equally spread out in the budget.

• Income that is earned is less than the expenditures.

• Donations to charity are included in the expenditures.

Last month, Emmanuel earned $50 in income but his overall expenses were $70. Which statement best describes Emmanuel's personal budget?

• He has a balanced budget

• He has an unbalanced budget

• Emmanuel is rich

Last month, Hailey earned $70 in income, but she only had $40 in expenses/expenditures. Which statements best describe her personal budget?

• She has a balanced budget

• She has an unbalanced budget

• She has a total savings of $30.

• She can afford to spend $10 on a new book next month

Last month, Kevin earned $60 in income, but he had $60 in expenses/expenditures. Which statements best describe his personal budget?

• His budget is unbalanced

• He has $0 in savings

• His budget is balanced.

Savings in a personal budget is money that is...

• total income minus total expenses equals total savings

• money/income set aside for the future

• possible to have when your expenses are greater than your income

All of the following are expenses EXCEPT...

• Buying ice cream

• Going to the movies with friends

• Purchasing lunch

• Getting paid to mow the lawn

A budget is used to...

• To help people improve their education and skills

• To help people determine how to train for their jobs

• To help people live healthier lives and exercise more

• To help people plan their spending and saving decisions

Why is it important to prepare and follow a budget?

• A budget helps people find jobs for income.

• A budget helps people to determine educational decisions.

• A budget helps people choose the best doctor for the family.

• A budget helps people make responsible economic decisions.