Budgeting

Front

What is the 50/30/20 rule in budgeting?

Back

spend 50% on needs, 30% on wants, and save 20%

Front

What is an emergency fund used for?

Back

covering unexpected expenses like medical bills or car repairs

Front

Which of the following is an example of discretionary spending? groceries, mortgage payments, gym memberships, electric bills

Back

mortgage payments

Front

What is the first step in creating a personal budget?

Back

track your income and expenses

Front

If your expenses consistently exceed your income, what is the best course of action?

Back

reduce discretionary spending or increase your income

Front

What is the recommended percentage of income to spend on housing?

Back

30%

Front

Which of the following is a strategy for managing debt effectively?
Options:
pay only the minimum payment each month,
focus on consolidating all debt into one loan, regardless of terms,
avoid making payments until the debt is urgent,
focus on paying off high interest debt first

Back

focus on paying off high interest debt first

Front

Which of the following best describes a variable expense? Options: rent payments that are the same every month, the cost of groceries that changes based on consumption, the savings account deposit made at the start of every month, a fixed monthly subscription fee

Back

the cost of groceries that changes based on consumption

Front

Why is it important to create a budget before receiving your first paycheck?

Back

to allocate your income toward expenses, savings, and goals before you start spending.

Front

What is a key benefit of automating savings in your budget?

Back

It guarantees savings are consistent and prioritized.