Budgeting Flashcard

Front

Why is creating a budget so important?

Back

A budget is needed for a successful financial plan.

Front

What is the first step in the budgeting process? What are examples of cash inflows? What are examples of outflows?

Back

Identify your current cash inflows and outflows.

Front

What is the purpose of a personal cash flow statement?

Back

It can record your cash inflows and outflows to see where your money is coming from and what it is going towards.

Front

T/F: Budgets will vary annually.

Back

False

Front

What does a budget help its user with?

Back

A budget will help the user save money on large purchases, unexpected expenses, and unexpected opportunities.

Front

What is a cash shortfall?

Back

When you do not have cash inflow in a month to cover the expenses of that month.

Front

When should a person reevaluate their budget and plan?

Back

When you start to have less money than what you should have from month to month during the budgeting process.

Front

Label which of the following as a household asset or a liquid asset: Stocks

Back

Liquid

Front

Label which of the following as a household asset or a liquid asset: Bonds

Back

Liquid

Front

Label which of the following as a household asset or a liquid asset: Checking account

Back

Liquid