GFL Strand 5, Standard 1: Budgeting

Front

What is the primary purpose of a financial plan?

Back

To prepare a strategy for managing income, expenses, and savings goals

Front

What is a fixed expense in a budget?

Back

A car loan payment that does not change monthly.

Front

Which is an example of a variable expense?

Back

A fluctuating utility bill based on monthly consumption

Front

What is the purpose of an emergency fund?

Back

To pay for unplanned medical bills or urgent car repairs

Front

What percentage of income is suggested for saving in the 70-20-10 budgeting rule?

Back

10% saved toward retirement and emergencies

Front

What is a financial goal?

Back

A clear savings target, like $5,000 for emergencies.

Front

What is commonly used to track income and expenses? Options: A monthly budget worksheet showing all spending, Bank statements from checking and savings accounts, Tax returns detailing annual earnings and refunds, Financial apps focused on investment monitoring

Back

A monthly budget worksheet showing all spending

Front

What is the definition of a periodic expense?

Back

An irregular but predictable cost, like car maintenance

Front

Which is an example of 'paying yourself first'?

Back

Setting aside 10% of your paycheck into savings immediately

Front

What is the purpose of financial planning?

Back

To establish and achieve short- and long-term money goals