Budgeting

What is a budget?

• A legal document for tax purposes.

• An estimate of income and expenses for a set period of time.

• A detailed plan for all future expenses and income.

• A record of past financial transactions.

What is the biggest factor for determining your budget?

• The amount of debt you have.

• Your savings account balance.

• Your income.

• The cost of your monthly rent or mortgage.

Why is being under budget in areas such as savings, debt repayment, and retirement detrimental?

• It results in unnecessary expenses.

• It indicates poor financial planning.

• It means you are spending too much money.

• It can lead to financial instability in the short-term and long-term.

What can constantly being over budget lead to?

• Increased savings.

• Financial freedom.

• Living paycheck to paycheck.

• Better credit scores.

What does creating a budget help you manage?

• Your academic performance.

• Your money for regular and unexpected expenses.

• Your investment portfolio.

• Your time management skills.