Financial Literacy

What is budgeting?

• Budgeting is the process of creating a plan to manage and allocate financial resources.

• Budgeting is the process of spending money without any plan or organization.

• Budgeting is the process of saving money for a specific purpose.

• Budgeting is the process of tracking expenses after they have been made.

Why is it important to create a budget?

• To track and manage finances, set goals, and make informed spending decisions.

• To waste time and effort

• To overspend and go into debt

• To have no control over finances

What are some common expenses that should be included in a budget?

• medical expenses, education expenses, home repairs, personal care, subscriptions, memberships

• entertainment, dining out, vacations, clothing, electronics, hobbies, gifts

• pet expenses, car maintenance, home decor, gym memberships, dining out, travel

• rent/mortgage, utilities, groceries, transportation, insurance, debt payments, and savings

What is the difference between fixed and variable expenses?

• Fixed expenses are costs that are paid in cash, while variable expenses are paid with credit cards.

• Fixed expenses are costs that change every month, while variable expenses remain the same.

• Fixed expenses are costs that remain the same every month, while variable expenses can change from month to month.

• Fixed expenses are costs that are not necessary, while variable expenses are essential.

What is the purpose of saving money?

• The purpose of saving money is to buy unnecessary luxury items

• The purpose of saving money is to have financial security, meet future goals, and be prepared for unexpected expenses.

• The purpose of saving money is to waste it on frivolous expenses

• The purpose of saving money is to hoard it and never spend it

What are some strategies for saving money?

What is investing?

• The act of spending money on luxury items

• The act of allocating money or resources to an asset, venture, or project with the expectation of generating a profit or return over time.

• The act of saving money in a bank account

• The act of borrowing money from a bank

Why is it important to invest?

• To lose money and never achieve financial goals.

• To stay stagnant and never grow wealth.

• To rely solely on a single source of income and never achieve financial goals.

• To grow wealth and achieve financial goals.

What are some different types of investments?

• savings accounts

• credit cards

• retirement plans

• stocks, bonds, mutual funds, real estate, commodities

What is the difference between income and expenses?

• Income is the money earned or received, while expenses are the money spent or paid out.

• Income is the money earned from investments, while expenses are the money spent on necessities.

• Income and expenses are the same thing.

• Income is the money spent or paid out, while expenses are the money earned or received.

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