Budgets 101

Which of the following is an example of a need for most people?

• A place to live

• Designer Jeans

• An expensive car

It's important to spend money on things you need before spending money on things you want.

• True

• False

What is a good reason to save money?

• To have money to buy things

• To have money put aside for emergencies

• For a future purchase

• Any or all of the choices

Money that your earn is called...

• expense

• debt

• income

• credit

Money that you spend is called...

• expense

• income

• debt

• profit

A plan for spending and saving. You must consider both income and expenses.

• hoarding

• banking

• budget

• investing

An expense that does NOT change from month to month.

• fixed expense

• variable rate

• opportunity cost

• online bill

Something thought to be an essential item required for life (food, water, etc.)

• surplus

• need

• profit

• want

The item you gave up to purchase the item you chose.

• expensive

• budget

• want

• opportunity cost

If your income is $20 per month, how much should you spend each month to stay on budget?

• exactly $20 dollars

• between $20-$30 dollars

• $20 dollars or less

• nothing