Personal Finance

Why should people have a budget?

• Budgets help people 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 can a budget help you save money?

• A budget often increases interest rates on someone's 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.

What is an income?

• The amount of money a person is worth

• Loans a person can take out from a bank

• The amount of debt a person has accumulated during their lifetime

• The money received from completing a job

Why are incomes 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.

How can someone "live within their income"?

• A person makes investments that will give them a high rate of their 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.

How does someone decide how much money to spend and how much they should save?

• By realizing their income is limited and saving all of it.

• By asking friends.

• By developing a budget to identify how much they can afford to spend and save.

• By asking for a higher salary, so they do not have to worry about saving or spending.