Budgeting

Charitable donations, entertainment expenses, and financial goals are all examples of...

• activities that contribute to overspending.

• things that are considered needs.

• activities that are necessary for a healthy lifestyle.

• things to consider when creating a budget.

Where should you look to find your current expenses when building your budget?

• ask your parents

• your wallet

• bank and credit statements

• your bank representative

The envelope method, notebook and pencil, and online software are all methods of ______.

• planning for your future

• understanding your current expenses

• estimating your unexpected expenses

• tracking your spending

How can you ensure you don't go over your budget?

• Round up your expense estimates to add a buffer

• Use most of your budget for entertainment expenses

• Find a friend that enjoys going shopping

• Buy all of your wants at one time.

In your budgeting process, when should you look at recurring expenses?

• Before reviewing your wants

• After considering entertainment expenses

• Before looking at your needs

• After your wants but before you needs

When setting a budget, you should consider...

• financial goals, current expenses, and income.

• mostly income.

• creative ways to spend your money.

• mostly your goals.

Why is using a budget beneficial?

• Helps to keep track of the money you receive

• Helps to prioritize your spending

• Helps reach short- and long-term financial goals

• All of the above

Which of the following is NOT true about emergency funds?

• They are used for anything listed on the budget.

• They can keep you from borrowing money from friends and family.

• They help you prepare for unexpected expenses.

• They help remove the worry about expenses not in the budget.

What should be considered when setting a budget?

• Needs and wants

• Savings

• Time management goals

• Needs, wants, and savings

An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...

• spending money from your “rent” envelope.

• emergency fund spending.

• tracking all of the money you spent in a month.

• getting an extra job so you can have money to cover that expense.