Money Management Skills

Front

What are common expenses to include in a monthly budget?

Back

Rent or mortgage, utilities, groceries, transportation, insurance, debt payments, savings, entertainment.

Front

What is the difference between needs and wants in budgeting?

Back

Needs are essential for survival, while wants are non-essential items that enhance quality of life.

Front

What is the purpose of budgeting?

Back

The purpose of budgeting is to plan and manage financial resources effectively.

Front

What happens if your expenses exceed your income?

Back

You would be in debt.

Front

What does 'paying yourself first' mean in saving money?

Back

It involves setting aside a fixed percentage or amount of your income as savings before using the rest for expenses.

Front

Define 'budget'.

Back

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

Front

What is an emergency fund?

Back

An emergency fund is savings set aside to cover unexpected expenses or financial emergencies.

Front

Why is it important to track your spending?

Back

Tracking spending helps identify spending habits, control expenses, and stay within budget.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant each month (e.g., rent), while variable expenses can fluctuate (e.g., groceries).

Front

What is discretionary spending?

Back

Discretionary spending refers to non-essential expenses that can be adjusted or eliminated (e.g., dining out, entertainment).