Budgets

An example of a fixed expense is

• mortgage or rent payments

• groceries

• gas

• movie tickets

_____________ is the amount you earn, usually from working a job.

• Taxes

• Income

• expenses

• none of the above

Federal taxes are payments you make to the U.S. Federal government.

• True

• False

_____________ is federal health insurance for people over 65.

• Social Security

• State health insurance

• Medicare

• None of the above

An example of a need is

• designer clothing

• a beach house

• movie tickets

• a warm coat

A budget is considered balanced when

• you spend more than you earn

• then amount you save is less than your earnings

• the amount you spend is equal to or less than the amount you earn

• your expenses are greater than your earnings

An example of a variable expense is

• health insurance

• rent

• groceries

• a car loan

An example of a want is

• concert tickets

• critical medicine

• a place to live

• food

The best way to save for startup capital is

• Spend more than you earn

• set aside a portion of the money you owe for taxes each month

• set aside a portion of your income each month

• None of the above

When creating a personal budget, it is important to consider __________

• needs before wants

• needs and wants

• need and wants equally

• needs after wants