Budgeting

How do wages and salary differ?

• Wages describe what you earn on an annual basis

• Salary describes what you earn on an annual basis

• Wages mean you have a standard amount in each paycheck

• Salaried employees are likely to be paid for overtime

Why is it important to have a personal budget?

• It helps manage finances, achieve goals, and ensure financial stability.
• It guarantees a luxurious lifestyle.
• It restricts spending on essential items.
• It reduces the need for income sources.

What is the purpose of planned spending in a personal budget?

• To ensure money is allocated for specific needs and expenses.
• To save money for unplanned emergencies.
• To invest money in the stock market.
• To maximize spending on non-essential items.

What are examples of expenses in a personal budget?

• bills, groceries, rent/mortgage payments, transportation costs, healthcare expenses
• money received as gifts
• savings for future goals
• money earned from investments

What is the main purpose of saving in a personal budget?

• To build a financial cushion and achieve specific financial goals.
• To donate money to charity
• To invest money in the stock market
• To spend money on non-essential items

How does a personal budget contribute to financial stability?

• By ensuring spending is aligned with income and savings goals.
• By encouraging excessive spending on non-essential items.
• By minimizing expenses to the bare minimum.
• By relying solely on borrowing money.

What are the components of a personal budget?

• income, planned spending, expenses, and saving
• salary, unplanned spending, expenses, and saving
• income, planned spending, taxes, and saving
• income, unplanned spending, expenses, and investment

What does 'income' refer to in a personal budget?

• money earned or received regularly
• money borrowed from friends
• money spent on non-essential items
• money saved for emergencies

What is 'planned spending' in a personal budget?

• allocating money for specific purposes or expenses
• saving money for future investments
• spending money randomly without any planning
• borrowing money from others

What are 'expenses' in a personal budget?

• costs incurred in daily life or for specific needs
• savings for future goals
• money received as gifts
• money earned from investments