5.2 Budgeting Review

Front

What is the primary purpose of creating a spending plan?

Back

To manage and allocate your income towards expenses, savings, and investments

Front

Which of the following is considered a fixed cost? Groceries, Rent, Entertainment, Dining out

Back

Rent

Front

What is the difference between gross pay and net pay?

Back

Gross pay is before deductions, net pay is after deductions.

Front

Why is it important to have a system for financial record-keeping?

Back

To make informed financial decisions

Front

Which of the following is a method for adjusting a budget for unexpected expenses?
Options:
Ignoring the expense,
Using savings or emergency funds,
Increasing your fixed costs,
Reducing your income

Back

Using savings or emergency funds

Front

What is the main difference between needs and wants?

Back

Needs are essential for survival, wants are additional desires.

Front

How can saving strategies help individuals achieve their saving goals?

Back

By providing a structured approach to saving money

Front

What is a variable cost?

Back

A cost that changes based on usage or consumption

Front

Which of the following is an example of a want? Water, Electricity, Designer clothing, Basic groceries

Back

Designer clothing

Front

How can a salary-based budget be adjusted if income decreases?

Back

By reducing savings contributions