Lesson 3 Flashcard: The Art of Budgeting

Front

The budgeting process starts with monitoring current spending.

Back

False

Front

Most short-term goals are based on activities over the next two or three years.

Back

False

Front

A common long-term goal for parents of a newborn child may involve saving for college.

Back

True

Front

Rent is considered a fixed expense.

Back

True

Front

Flexible expenses stay about the same each month.

Back

False

Front

The final phase of the budgeting process is to:

Back

review financial progress

Front

An example of a long-term goal would be: an annual vacation, saving for retirement, buying a used car, completing college within the next six months

Back

saving for retirement

Front

A clearly written financial goal would be: “To save money for college for the next five years”, “To pay off credit card bills”, “To invest in an international mutual fund for retirement”, “To establish an emergency fund of $4,000 in 18 months”

Back

“To establish an emergency fund of $4,000 in 18 months”

Front

An example of a fixed expense is: clothing, auto insurance, an electric bill, educational expenses

Back

auto insurance

Front

_____ is commonly considered a flexible expense.

Back

Entertainment