Personal Finance Chapter 4

A personal balance sheet lists your income and expenses for a period of time.

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Variable expenses remain constant each month and must be paid even when income is less than expected.

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A person’s actual income, saving, and spending may not be exactly as planned on a budget.

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The first step in preparing a budget is to plan the amount you will save each month.

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A financial plan contains goals you want to accomplish.

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Money and items of value that you own are assets.

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When your estimated expenses are less than your actual expenses, the result is an unfavorable variance.

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When you create a financial plan, the purpose of gathering information is to look at the current state of your finances.

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The amount of money a person has to spend to spend after wants are met is called discretionary income.

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• False

Keeping logs or journals on paper that lists type and amounts of income, saving, and expenses is an example of computerized records.

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• False