Final Review: Budgeting

Building Wealth is the process of

• Saving money in the bank and not spending it

• Collecting material possessions which maintain value, such as gold jewelry, diamonds, paintings etc.

• Not spending

• Combining budgeting, saving and investing to increase net worth

45% of Americans have less than $1,000 saved for a(n) _______.

• Emergency

• Car

• Retirement fund

• Phone

The purpose of an emergency fund is to...

• Teach you discipline—saving is purely a good exercise in self-control.

• Teach you how to invest in growth stock mutual funds.

• Have some extra money in a checking account in case you need to transfer some to your spending categories.

• Be able to cover an unexpected expense with cash and protect you from having to pile up debt when something goes wrong.

While saving money isn't easy at first, it will make your life a lot _______ in the future if you make it a habit now.

• Longer

• Poorer

• Harder

• Easier

Why is budgeting so important?

• It helps you brush up on your math skills.

• It gives you control of your money and sets you up for financial success in the future.

• It helps you figure out the best way to justify purchases that maybe aren't necessary.

• It's a good way to make sure all your money is spent by the end of the month.

Although the majority of Americans think budgeting is important, about______ of Americans actually use a budget.

• 25%

• 50%

• 75%

• 90%

What does a budget show you?

• 1. How much money you plan to come in and go out during the month

• 1. How much you need to save

• 1. How much money you need to earn

• 1. How much money you spent last month

The first priority in your budget should be _____.

• Monthly Savings

• Long-term Savings

• Irregular Savings

• Giving

How often should you create a budget?

• Daily

• Weekly

• Monthly

• Yearly

Why is tracking your expenses throughout the month important?

• It allows you to delete categories you don't like.

• It gives you insight into whether you're sticking to the budget you set.

• It helps you pull money from your savings to spend in other categories.

• It really isn't that important in the long run.