Budgeting and Saving

If an expense can NOT be removed from your budget to save money, it is considered a _____.

• Income

• Want

• Need

• Savings

Preparing a budget includes

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

Which of the following most accurately describes a budget deficit?

• the money left over after all expenses are paid
• the difference between income and expenses
• expenses owed every month
• not having enough money to cover expenses

What is a budget?

• An estimate of how much money people will give you.

• An estimate of how much money you will earn and how much you will spend.

• An estimate of how much money you will give to charity.

A situation where income is greater than expenses is a ___ budget

• deficit

• surplus

• income

• expense

What should you prioritise when considering spending?

• Wants

• Needs

• Splurges

• All of the above

What is the purpose of a personal budget?

• To help keep track of expenses

• To guide financial decisions

• As a tool to help you save and take control of your income

• All of the above

Ben is saving to buy concert tickets for $180 in 3 months time. How much will he need to save on average each month to reach his goal?

• $80 a month

• $50 a month

• $60 a month

• $30 a month

Ella is considering going to the movies with her friends. What should she consider when making this financial decision?

• The costs involved in going (food, movie ticket, public transport etc) and if these are wants or needs

• The benefits of going (eg. social, relaxation)

• How the cost will impact her ability to meet her financial goals

• How the cost will impact the ability to pay for future needs

• All of the above

What is saving?

• Spending more than you earn

• Earning more than you spend

• Knowing how much you earn and spend

• Creating a budget