Introduction to Budgeting

In the 50/30/20 Budget, what do the numbers represent? Select the answer with the correct order.

• Needs, wants, savings

• Wants, savings, needs

• Savings, needs, wants

Examples of needs include

• housing

• utilities

• travel

• transportation

Examples of wants include

• monthly subscriptions

• meals in a restaurant

• gifts

• minimum loan payments

One important reason to save is to have

• needs

• wants

• an emergency fund

• afford entertainment

What is income?

• any money you earn

• all money you owe

• any money you receive

• all money you save

What is an expense

• any money you receive

• all money in an RRSP

• all money you spend

• any money in savings accounts

Which of the following are good strategies for saving money?

• Only save the money that you did not spend

• Make saving a habit

• Reduce your expenses

• Don't budget for savings

An arrangement to put off payment of a purchase is

• savings

• credit

• interest

• expenses

Types of credit can include

• savings accounts

• student loans

• lines of credit

• credit cards

• loans

One of the most important factors in using credit is the interest rate.

• true

• false