Budgeting

Which of the following is false about budgets?

• keeps you from overspending

• shuts down risky spending habits

• gets you approved faster for loans

• helps you plan your future purchases

Match the following terms with their meanings.

• needs

• anything that can be converted into cash

• assets

• Starbucks, gym memberships, movies

• debts

• needs, fun money, savings

• 50.30.20

• anything owed

• wants

• housing, food, clothing

Remember your credit score may be damaged if your credit utilization is over ____ percent of your limit.

• 60

• 50

• 40

• 30

While having savings won't make you rich, it is recommended that you have an emergency fund of ____ months of expenses put aside.

• 1-2

• 3-5

• 6-12

• 3-6

All of the following are examples of needs, except....

• professional expenses

• food

• eating out

• shampoo

What is the difference between wealth and income?

• Income is what you earn on a job, but wealth is what you already have.

• Wealth is how much you have after subtracting your debts. Income is what you earn.

• Wealth is when you inherit money. Income is what you earn.

• There is no difference.