Budgeting Review

What are fixed expenses?

• Regular, predictable costs that remain constant each month

• Expenses that are only paid in cash

• Random, unpredictable costs that change every month

• One-time expenses that occur occasionally

Which of the following is a variable expense?

• Car payment

• Groceries

• Mortgage

What is the impact of budgeting on financial goals?

• Budgeting only works for short-term financial goals

• Budgeting makes it harder to achieve financial goals

• Budgeting has no impact on financial goals

• Budgeting helps in managing and allocating funds effectively, which in turn helps in achieving financial goals.

Which of the following is a variable expense?

• Car insurance

• Groceries

• Rent

• Mortgage payment

How does budgeting help in controlling spending?

• Budgeting helps in controlling spending by setting limits and tracking expenses.

• Budgeting makes it difficult to track expenses

• Budgeting encourages overspending

• Budgeting has no impact on spending