Personal Budget

What is a budget?

• The amount of money you make in a year.

• The estimate of your income and expenses.

• Your expenses for the month

• I don't know

What is one of the reasons you need a budget?

• It's a visual of how much money you make and spend.

• It does not show you how much money you spend

• It doesn't help you plan for the future.

• There is no reason; you do not need one.

What is income?

• All the money you receive.

• salary

• wage

• All of the above

What are payments?

• Money that you save.

• Money that you spend in your day-to-day life.

• Money that you receive.

• Salary

A balanced budget means that your income is equal to your payments.

• True

• False

What are the benefits of budgeting?

• You know exactly how much income you receive, and how you are spending it.

• You can achieve financial goals, such as going on an overseas trip or buying a car.

• You can avoid getting into debt or having a deficit.

• All of the above.

Surplus is the amount of money left over once all of your payments have been made.

• True

• False

Charlie earns $450 a fortnight from her part-time job at the library. After Charlie makes all her payments she has $20 remaining. What is the $20 remaining amout called?

• Deficit

• Surplus

• Income

• None of the above.

When you make a budget it is important to distinguish between which items are needs and which items are wants.

• True

• False

Something that is more important than other things is called

• Priority

• Need

• Want

• Surplus