What is a Budget?

What is a budget?

• A list of things you want to buy.

• A plan to help you track how much money you make, spend, what you spend on, and save.

• A record of all your past purchases.

• A way to earn more money.

What is income?

• The total amount of money you earn.

• The money you spend on things you don't need.

• The money you save for future goals.

• The amount of money left after all expenses.

What is the recommended percentage of your income that should be allocated to savings according to the 50/30/20 rule?

• 50% of your income.

• 30% of your income.

• 20% of your income.

• 10% of your income.

If your total monthly income is $2,000, how much should you allocate for your needs according to the 50/30/20 rule?

• $400

• $600

• $800

• $1,000

If your budget is out of balance and you need to reduce spending, which category should you prioritize cutting first?

• Wants

• Needs

• Savings

• Investments