Budgeting Basics Quizs

Budgeting Step 3: Create a Plan

• Allocate income to expenses

• Reduce unnecessary spending

• Increase savings rate

• Invest in stocks

Income

• Money received, especially on a regular basis

• A type of investment

• A form of taxation

• A method of saving money

Breaking a Lease

• Ending a rental agreement early

• Renewing a rental agreement

• Transferring a lease to another tenant

• Increasing the rent amount

Surplus

• Income exceeds expenses

• Expenses exceed income

• Income equals expenses

• Income is less than expenses

Envelope System

• Cash for categories in envelopes

• A method of digital banking

• A type of investment strategy

• A budgeting technique using spreadsheets

Lease Agreement

• Contract between tenant and landlord

• Agreement for the sale of property

• Document for loan approval

• Contract for employment

Budget

• A plan for managing income and expenses

• A type of investment strategy

• A method for saving money

• A financial report for a company

Grocery Budgeting Tips

What is one effective strategy for managing a grocery budget?

• Plan meals and make a list

• Buy in bulk without a plan

• Purchase only organic products

• Ignore sales and discounts

Budgeting Step 4: Track Expenses

• Record all spending

• Estimate future expenses

• Ignore small purchases

• Focus only on fixed costs

Variable Expenses

• Costs that can change each month

• Fixed costs that remain the same

• One-time expenses that do not recur

• Costs that are predictable and stable