Budget/Personal Finance

What does it mean to budget?

• reevaluating your savings account yearly

• an estimate of income and expenses for a set period of time

• adding up all of your income

• your financial goals

What is the first step you should take when planning your budget?

• reviewing and adjusting your expenses

• add up all of your income

• divide your expenses into fixed vs variable

• gather all financial statements

Which of the following is NOT a reason to budget?

• helps you meet your financial goals

• locates where your money is going

• prevents you from saving money

• sheds light on bad spending habits

Fixed expenses are...

• costs that are necessary and stay the same amount each month

• costs that are necessary, but the amount that you spend differs from month-to-month

• costs that are easily changed, reduced, or eliminated.

• income not spent, but rather putting money aside for big purchases, emergencies, the future, etc.

How often should you reevaluate your budget?

• yearly

• monthly

• weekly

• quarterly

What is a variable expense?

• costs that are easily changed, reduced, or eliminated

• costs that are necessary and stay the same amount each month

• income not spent, but rather putting money aside for big purchases, emergencies, the future, etc.

• costs that are necessary, but the amount that you spend differs from month-to-month

What is a flexible expense?

• costs that are easily changed, reduced, or eliminated

• costs that are necessary, but the amount that you spend differs from month-to-month

• costs that are necessary and stay the same amount each month

• income not spent, but rather putting money aside for big purchases, emergencies, the future, etc.

What is an example of a fixed expense?

• food

• electric bill

• auto insurance

• clothing

Which of the following is NOT an example of flexible expense?

• going out to eat

• making a car payment

• going to a vacation

• getting your nails done

If you go over your budget, what is a way to cut down on expenses?

• eat out less

• go to the movies less

• skip out on a concert

• all of the above