Financial Literacy

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What is a budget?

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A budget is a plan that outlines how much money you have and how you will spend it.

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Why is it important to balance a budget?

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Balancing a budget helps ensure that you do not spend more money than you have, preventing debt.

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What does net pay mean?

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Net pay is the amount of money you take home after all deductions, such as taxes, are taken out of your gross pay.

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What are fixed expenses?

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Fixed expenses are costs that do not change from month to month, such as rent or insurance.

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What are variable expenses?

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Variable expenses are costs that can change from month to month, such as groceries or entertainment.

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How can you increase your savings?

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You can increase your savings by reducing your expenses or increasing your income.

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What is an allowance?

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An allowance is a set amount of money given regularly, often by parents to children, to manage their spending.

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What does it mean to decrease expenses?

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Decreasing expenses means spending less money on certain items or activities.

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What is the purpose of saving money?

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The purpose of saving money is to set aside funds for future needs or emergencies.

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How can you balance your budget if you have a shortfall?

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You can balance your budget by either increasing your income or decreasing your expenses.