Budgets and Money

What is income?

• Money received regularly for work or through investments

• Money found on the street

• Money paid for shopping

• Money borrowed from a friend

Give an example of a source of income.

• Salary

• Pocket money

• Allowance

• Inheritance

What are expenses?

• Amount of money in a bank account

• Costs incurred in the process of generating revenue or running a business

• Money earned from selling goods

• Savings from not spending money

Provide an example of a fixed expense.

• Eating out at restaurants

• Buying new clothes

• Rent or mortgage payments

• Grocery shopping

What is the difference between fixed and variable expenses?

• Fixed expenses remain constant each month, while variable expenses can change from month to month.

• Fixed expenses are paid weekly, while variable expenses are paid monthly

• Variable expenses are only for luxury items, while fixed expenses are for necessities

• Fixed expenses are always higher than variable expenses

Why is it important to track your expenses?

• To understand where the money is being spent and for better budgeting and financial planning.

• To ignore financial responsibility

• To impress others with your spending

• To buy more unnecessary things

What is a budget?

• A type of animal

• A type of fruit

• A financial plan that outlines expected income and expenses over a certain period of time.

• A type of car

How can a budget help you manage your money?

• By tracking income and expenses, prioritizing spending, and saving for future goals.

• By borrowing money to cover all expenses

• By ignoring income and expenses and spending freely

• By not setting any financial goals and spending impulsively

What are some ways to increase your income?

• Spend more money to impress your boss

• Invest in a pyramid scheme

• Ask for a raise, seek higher-paying job opportunities, start a side business, freelancing

• Quit your job and live off savings

Why is it important to save money?

• To buy unnecessary items and show off

• To ensure future financial security and be prepared for unexpected expenses.

• To have more money to spend on entertainment

• To support a lavish lifestyle