1. Budgeting

What is a budget?

• A spending plan based on income and expenses

• A list of all your debts

• A plan to save all your money

• A method to avoid all expenses

The 50/30/20 budget allocates 30% of your income to ______.

What is the primary purpose of a budget?

• To deprive yourself of spending

• To take control of your money

• To increase your debts

• To avoid all financial planning

A good budget helps you save for the future by earmarking money for an emergency fund and ______ goals.

Which of the following is NOT a step in starting a budget?

• Outline your income

• Track expenses

• Review account balances

• Ignore debts

Which budgeting system involves using envelopes for different spending categories?

• 50/30/20 budget

• Envelope system

• Zero-based budgeting

• Pay-yourself-first budgeting

How to budget money...Reorder the following:

• Choose a budgeting system

• Practice budget management

• Track your progress

• Figure out your net income

• Automate your savings

Match the following

• Toxic Debt

• Priority 2

• Debt repayment

• Priority 1

• Starter emergency fund

• Priority 5

• Emergency fund

• Priority 3

• 401(k)

• Priority 6

Organize these options into the right categories

Groups:

(a) Needs

,

(b) Wants

• Spa Treatments
• Safety
• Sanitation
• Gourmet Dining
• Luxury Car
• Water
• Education
• Shelter
• Clothing
• Vacation
• Food

• High-End Electronics
• Latest Smartphone
• Healthcare
• Designer Clothes

To track your spending you should 1. ​ ​ (a)  

​

2. ​ (b)   3. ​ ​ ​ (c)   4. ​ (d)   5. ​ (e)  

• Check your account statements
• Categorize your expenses
• Keep your tracking consistent
• Explore other options
• Identify room for change
• Ignore your spending habits
• Spend without a budget
• Rely solely on memory for expenses