Budgeting

Budget

• Anything that you might incur an expense for

• Is a spending plan for managing your money that includes income and expenses

• All expenses deducted from income before net pay can result.

• Income after all deductions have been paid.

Variable expenses

• Necessary things or items that are paid monthly

• Expenses that increase/decrease monthly/yearly EX: Utilities, food, entertainment, internet, TV provider

• Is a spending plan for managing your money that includes income and expenses.

• Expenses that remain the same over a period of time.

Creating a______: • makes accidental overspending less likely. • can make you more conscious of your money’s value. • can reduce your chances of falling into debt .* you'll feel less stressed and happier

a budget in which the amount spent is less than or equal to the amount taken in

• invest

• balanced budget

• withholdings

• discretionary

A budget is a _____ for distributing your income.

Planning for ______ is number 1 on the priority list for your budget.

• essentials

• security

• goals

• lifestyle

• discretionary

expenses that are optional

• invest

• balanced budget

• withholdings

• discretionary

Making rent or mortgage payments • Paying for transportation are examples of (choose 2)

• Mandatory

• Discretionary

• Fixed

• Variable

Which of the following is a benefit of using a budget?

• Helps to keep track of the money you receive

• Helps to prioritize your spending

• Helps reach short- and long-term financial goals

• All of the above

Which of the following is NOT a benefit of using a budget?

• A budget can help you purchase anything you want

• A budget can help you keep track of your money.

• A budget can help you make plans to reach your financial goals

• A budget can help you decide the importance of your expenses