Budgeting Flashcard

Front

What is a budget?

Back

A plan for how to spend and save money

Front

Which of the following is considered a fixed expense? Grocery shopping, Rent or mortgage payments, Entertainment, Dining out

Back

Rent or mortgage payments

Front

What is the purpose of setting financial goals in a budget?

Back

To give direction and motivation to your spending and saving

Front

What is the first step in creating a budget?

Back

Track your expenses

Front

Why is it important to track your spending?

Back

To avoid overspending

Front

Which of the following is a variable expense? Rent, Car loan payment, Utility bills, Entertainment

Back

Entertainment

Front

What is an emergency fund?

Back

Money saved for emergencies like medical bills or car repairs

Front

What does it mean to live within your means?

Back

Spend less money than you earn

Front

What is a discretionary expense?

Back

Costs for non-essential items like entertainment

Front

Which of the following can help you stick to a budget?
Options: Ignoring all expenses, Setting realistic goals and tracking spending

Back

Setting realistic goals and tracking spending