Simple Budgets

Front

What is an Expense?

Back

An expense is a cost incurred for goods or services, representing money spent.

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What is Income?

Back

Income is the money received, especially on a regular basis, for work or through investments.

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What is the purpose of a budget?

Back

The purpose of a budget is to plan and control spending and saving to achieve financial goals.

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What does it mean to save money?

Back

Saving money means setting aside a portion of income for future use, rather than spending it all.

Front

What is a personal savings plan?

Back

A personal savings plan is a strategy for saving money over time to achieve specific financial goals.

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What is the difference between needs and wants?

Back

Needs are essential items required for survival (like food and shelter), while wants are non-essential items that enhance quality of life.

Front

Why is it important to use a budget?

Back

Using a budget helps individuals track their income and expenses, ensuring they do not overspend and can save for future needs.

Front

What is a balanced budget?

Back

A balanced budget occurs when total income equals total expenses, meaning no deficit or surplus.

Front

What is a financial goal?

Back

A financial goal is a specific objective related to money that an individual aims to achieve, such as saving for a car or college.

Front

What is discretionary spending?

Back

Discretionary spending refers to non-essential expenses that can be adjusted or eliminated, such as entertainment and dining out.