Budgeting and Saving

What is budgeting?

• Sharing your money with friends

• Planning how to spend your money

• Earning lots of money

• Saving all your money

The act of setting aside money for future use instead of spending it immediately is called __________.

In budgeting, expenses can be divided into two categories: needs and __________.

Ideally, when following the 20/50/30 rule, you should save at least _______% of your income. (Enter the answer in numbers)

Budgeting encourages ________.

According to the 50/30/20 rule, we should save 50% of our income.

• True

• False

Budgeting helps us make informed decision.

• True

• False

The right time to save is when we start working.

• True

• False

We should make saving a habit.

• True

• False

Reema gets pocket money of ₹1,000. If she follows the 50/30/20 rule, she should be allocating ₹____ for her needs. (Enter the answer in numbers)