Budgeting

A budget can help you allocate money for spending and saving.

When you create a plan for spending and saving, you can meet

your goal of buying a new game.

• money

• spending

• saving

• plan

Creating a budget is essential for managing your finances. Which of the following is a benefit of having a budget?

• Increases expenses

• Reduces financial stress

• Limits your freedom

• Decreases savings

When planning a budget, it's important to differentiate between wants and needs. Which of the following is considered a need?

• Latest smartphone

• Designer clothes

• Home rent

• Video games

Susan is earning money for a new bike. She received $50 for helping a neighbor.

What is the best plan to help her meet her goal?

• Purchase new tools for the next job and save the rest.

• Spend $30 on candy and $20 at the movies.

• Buy new shoes worth $50.

• Give the money back.

A budget should include -

• putting all money into savings.

• donating all income.

• spending and saving money.

• purchasing wants first.

A budget should include ____________________________.

• donating all income

• purchasing wants first

• putting all money into savings

• spending and saving money

Jack's mom said she still owes money for their car.

It cost more money than she had saved.

What is the meaning of the word owes?

• how much more must be paid

• money made driving the car

• the total cost of the car

• taxes paid to the government

What is a smart financial move when receiving a large sum of money unexpectedly?

• Immediately spend it on luxury items

• Invest all of it without research

• Save or invest a portion after careful planning

• Give it all away

Why is it important to track your expenses when following a budget?

• To ensure you can spend more on wants

• To avoid saving money

• To identify areas where you can cut back

• To impress friends and family

What is the primary purpose of setting financial goals?

• To make budgeting more complicated

• To ensure you spend all your income each month

• To guide your spending and saving decisions

• To avoid making any financial plans