Budget

The following are guidelines for budgeting with an irregular income except:

• Prioritize the list in order of importance.

• Make a list of all of your expenses for the month ahead.

• Budgeting with an irregular income is no different.

• When your check comes in, spend your money all the way down the list.

Which of the following is not a record-keeping feature you could expect from your bank?

• An account register

• A reconciliation sheet

• Customer service reconciles your account

• A monthly account statement

Budgeting is crucial to your financial success.

• True

• False

Having more than one bank account is never a good idea since it can complicate money management.

• True

• False

The zero-based budget is the best method of budgeting because:

• It ensures every dollar you make is assigned a specific purpose

• It requires less discipline

• It allows less money for wants

• It is less complicated than other types of budgets

The envelope system works great for managing spending on things that don’t normally have a FIXED monthly expense.

• True

• False

Which of the following statements is false?

• A cash flow statement summarizes all of the income and outgo (spending) over a certain time period.

• A budget is a written plan for saving and spending.

• A budget is meant to summarize the saving and spending that has taken place over the past year.

• The cash flow statement is reflective of what has already taken place.

Non-essential expenses.

• Discretionary

• Intermittent

Which of the following is a consequence of overdrawing your checking account?

• Bounced check fee from the store

• Stress from money mismanagement

• Overdraft fee from your bank

• All of the above

Groceries are a:

• Variable expense

• Discretionary expense