Quiz 4 - Budgeting

Budgeting is crucial to your financial success.

• True

• False

Preparing a budget includes:

• Income and expenses (spending)

• Only listing your expenses

• Only listing your income

• Only listing your debts

An example of a FIXED expense (doesn't change) could be:

• Rent

• Groceries

• Petrol

• Clothes

What is a record of income and spending and a plan for managing money?

• Bank statement

• Bank account

• Budget

• Interest rate

What do we call money available to spend on goods and services that are not essential?

• Disposable income

• Essential income

• Variable expenditure

• Fixed expenditure

Expenses that do not change from month to month, such as mortgage or rent.

• Fixed

• Variable

Expenses that vary from month to month, such as entertainment, car repairs or electricity bills.

• Fixed

• Variable

Making a purchase based on an immediate want or due to the pressure of advertising is considered Impulse Buying.

• True

• False

Which of the following is not a potential benefit of budgeting?

• Reaching long-term goals

• Building up an emergency fund

• Avoiding debt

• Increasing income

What’s the first thing you should do with any extra income?

• Build up your savings

• Quit your part-time job

• Think of something you really want and buy it—you’ve earned it!