Personal and Family Budgets

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What is a budget?

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A budget is a plan that outlines expected income and expenses over a specific period, helping individuals manage their finances.

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What are fixed expenses?

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Fixed expenses are costs that do not change from month to month, such as rent or mortgage payments.

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What are variable expenses?

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Variable expenses are costs that can change each month, such as groceries or entertainment.

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What is the purpose of a personal budget?

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The purpose of a personal budget is to track income and expenses, ensuring that spending does not exceed income.

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How do you calculate the percentage of income spent on an expense?

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To calculate the percentage, divide the expense by total income and multiply by 100.

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What is the difference between income and expenses?

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Income is the money received, while expenses are the costs incurred.

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What is a household budget?

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A household budget is a financial plan that includes all income and expenses for a family or individual.

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What is discretionary spending?

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Discretionary spending refers to non-essential expenses, such as dining out or entertainment.

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What is the importance of savings in a budget?

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Savings are important in a budget to prepare for emergencies and future expenses.

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What is a financial goal?

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A financial goal is a specific objective related to money management, such as saving for a vacation or paying off debt.