Budgeting

Budgeting is crucial to your financial success.

• True
• False

Preparing a budget includes

• Income, Expenses, Saving
• Only listing your expenses
• Only listing your debts
• Only listing your income

When making a budget, a person’s needs should come before their wants.

• True

• False

Which of the following is generally the most expensive category in a person’s budget?

• Healthcare

• Clothing

• Transportation

• Housing

Payments can be made in the future.

• Debit Card

• Credit Card

• Stored Value Card

Steve has a good job as well as a checking and savings account. When he went to the store to buy groceries, his total was $45.23. However, he only had $30 in cash on him. How should he pay for his groceries?

• Credit Card
• Check
• Debit Card
• He should get more money from an ATM. 

Mary has a part-time job. She can pay her bills but does not typically have much money left over. She gets into a car accident and must pay $400 for her car to be fixed. She only has $150 in her bank account and $24 in cash. How should she pay to fix her car?

• Check
• Cash
• Credit Card
• Debit Card

What is the difference between Debit and Credit?

• Debit uses money borrowed from the bank, Credit uses the money you already have.
• Credit uses borrowed money or the bank's money, Debit uses your money.  
• They are both cards, they are the same. 
• Debit charges interest until the balance is paid. Credit does not because you are using your own own money. 

Using a person's own money is physical form.

• Credit Cards

• Cash

• Debit Cards

• Online Banking

Credit is used for:

(Select ALL that apply)

• Buying a home

• Student loans

• Large purchases (like washer & dryer, new phone, doctors bill)

• Emergencies (leaky roof, fix the brakes on a vehicle)