Budgeting Basics (Part 1)

Which of the following is an itemized summary of the expected income and

expenses for a defined period of time?

• Net worth

• Balance sheet

• Budget

• Equity

Liabilities are an individual’s expenses and outstanding debts

• TRUE

• FALSE

Long-Term goals are set to be achieved in less than a year of time.

• TRUE

• FALSE

Definition: individual who enjoys spending money on himself/herself or others

• Risk Taker

• Spender

• Saver

• Flyer

Definition: individual who plans for the future and is prepared for any type of financial situations

• Risk Taker

• Security seeker

• Saver

• Flyer

Which of the following is an expense which stays relatively the same from month to month, such as a car payment or rent?

• Fixed expense

• Variable expense

• Estimated expense

• Equity expenses

Liabilities are individual’s belongings which have value

• TRUE

• FALSE

Spending wants are expenses which help an individual to live more comfortably

• TRUE

• FALSE

Definition: individual who does not consider money as a necessity and does not have much of an opinion on money

• Risk Taker

• Spender

• Saver

• Flyer

Which of the following is an example of a variable expense?

• Rent

• Entertainment

• Car payment

• Electricity