Budgeting Flashcard

Front

What is budgeting?

Back

The process of creating a plan to manage income and expenses over a specific period

Front

What is the first responsibility in budgeting?

Back

Income Tracking

Front

Which of the following is a short-term savings goal? Buying a house, Emergency fund, Retirement plan, Starting a business

Back

Emergency fund

Front

What is the purpose of creating a savings plan?

Back

To develop a systematic approach to savings

Front

What is an example of an interest-bearing account?

Back

Savings account

Front

Why is discipline important in saving?

Back

To consistently contribute to savings

Front

Which of the following is considered an essential need? A new smartphone, Food, Designer clothes, A sports car

Back

Food

Front

How can you avoid impulse purchases?

Back

By sticking to the budget

Front

Which of the following is a non-essential want?
Options: Shelter, Education, Luxury items, Food

Back

Luxury items

Front

Why is it important to distinguish between needs and wants?

Back

To make informed spending decisions