Spending Plan Jan 01

What are the three main parts of a good spending plan?

• Setting goals, identifying income, tracking expenses

• Setting goals, identifying expenses, tracking income

• Setting goals, identifying income, tracking and adjusting expenses

• Setting goals, identifying income and expenses, tracking and adjusting spending

What was Emily's first priority goal in her spending plan?

• Creating a travel fund

• Establishing an emergency fund

• Buying a new car

• Investing in stocks

What type of expenses are rent, utilities, and insurance considered as?

• Fixed expenses

• Flexible expenses

• Variable expenses

• Irregular expenses

How did Emily figure out her average monthly flexible expenses?

• By using a spending calculator

• By asking her friends

• By guessing the amount

• By going through her bank statements

What did Emily realize when she subtracted her expenses from her income?

• Her expenses exceeded her income

• Her income exceeded her expenses

• She needed to borrow more money

• She had enough money to buy a new car

What principle of personal finance did Emily remember from her mom?

• Spend more than you earn

• Borrow money for unnecessary expenses

• Wants and needs are the same thing

• Spend less than you earn

What did Emily decide to do to reduce her spending on dining out?

• Stop eating out completely

• Invite friends over to cook together

• Order takeout more often

• Go to expensive restaurants

What is the key strategy to become an empowered financial decision maker like Emily?

• Create a spending plan and adjust it as you go

• Borrow money for all your expenses

• Spend all your income

• Ignore your expenses