Budgeting Basics

The budgeting process starts with monitoring current spending.

• True

• False

Most short-term goals are based on activities over the next two or three years.

• True

• False

A common long-term goal may involve the parents of a newborn child saving for college.

• True

• False

Rent is considered a fixed expense.

• True

• False

Flexible expenses stay relatively the same each month.

• True

• False

An electric bill is commonly considered a fixed living expense.

• True

• False

A security deposit covers the rent for the first month when moving into an apartment.

• True

• False

A roommate may reduce the financial burden of renting an apartment.

• True

• False

Saving money for a down payment to buy a house is usually considered a short-term goal.

• True

• False

A lease is designed to protect the rights of both a tenant and a landlord.

• True

• False