Personal Finances & Budgeting

Front

What is a benefit of tracking your expenses?

Back

To identify spending patterns.

Front

What is the purpose of an emergency fund?

Back

To cover unexpected expenses.

Front

Which of the following is considered a fixed expense?

Back

Rent or mortgage payments.

Front

What is the purpose of creating a budget?

Back

To track income and expenses.

Front

How often should you review and adjust your budget?

Back

Monthly.

Front

What is a budget?

Back

A financial plan that outlines expected income and expenses over a specific period.

Front

What are variable expenses?

Back

Expenses that can change from month to month, such as groceries and entertainment.

Front

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

Back

A guideline for budgeting where 50% of income goes to needs, 30% to wants, and 20% to savings.

Front

What is the difference between needs and wants?

Back

Needs are essential for survival (e.g., food, shelter), while wants are non-essential (e.g., luxury items).

Front

What is a financial goal?

Back

A specific objective to achieve with your finances, such as saving for a car or paying off debt.