TOPIC 3: Budgetting

______: A plan for managing money

• Fund

• Goods and Services

• Budget

• Pension

To create a budget, we use ______

• Income + Expense

• Expense - Income

• Income - Expense

• Income = Expense

One is said to have a 'surplus' balance when _____

• Income > Expense

• Income = Expense

• Income < Expense

One is said to have a 'deficit' balance when _____

• Income > Expense

• Income = Expense

• Income < Expense

One is said to has a 'break-even' balance or '0' leftover when

_____

• Income > Expense

• Income = Expense

• Income < Expense

All of the following are tips to smart spending EXCEPT

_____

• Prioritize spending for needs before wants

• One should allocate some part of his income for savings and for emergency fund

• Invest some of your money

• Spend for wants and if have left-over, spend it for your needs

In creating a budget, which of the following expenses should you give

PRIORITY to?

• Variable Expense

• Fixed Expense

• Discretionary Expense

• Essential Expense

An example of FIXED EXPENSE (doesn't change) is ___

• Rent

• Petrol

• Groceries

• Cloth

What is a record of income and spending

and a plan for managing money

• Bank Statement

• Budget

• Bank Account

• Interest Rate

Expenses that do not change from month to month, such as

mortgage or rent

• Fixed Expense

• Variable Expense