Personal Finance/Budgeting

Why is it important to have a budget?

• budgets help individuals manage their limited income

• budgets provide employers with an individual's worth

• budgets help the government calculate how much citizens owe in taxes

• budgets encourage employers to pay their employees more

How do budgets help people save money?

• a budget often increases interest rates on somones debt

• a budget is a tool to help someone spend and save their income

• a budget identifies the best investment for a person

• a budget helps a person find employment

Money received from completing a job is called?

• budget

• inheritance

• income

• investment

Why is income always limited?

• all resources are scarce

• to prevent everyone from being wealthy

• to justify everyone having a 40 hour work week

• employers do not have enough money to pay everyone

What does it mean to "live within one's income"?

• a person makes investments that will give them a high rate of return

• a person should not spend more than their income

• a person only buys used goods

• a person only maintains one job at a time

Anna was recently hired to be a lifeguard at the local pool. She will be making $20/hour. How can she decide how much money to spend and save this summer?

• by realizing her income is limited and saving all of it

• by asking her friends

• developing a budget to identify how much she can afford to spend and save

• asking for a higher salary, so she does not have to worry about saving of spending