Understanding Budgeting

Match the following budgeting methods with their descriptions:

• Envelope system

• Allocate money into envelopes for different categories

• Pay-yourself-first budgeting

• Every dollar is assigned a purpose

• 50/30/20 budget

• Prioritize savings before spending

• Zero-based budgeting

• Spend 50% on necessities, 30% on wants, 20% on savings

Budgeting can help you (a)   your relationship with money.

• Ignore

• Understand

• Complicate

• Forget

Match the following purposes with their descriptions.

• Purposefully neglecting account balances and debts

• To avoid budgeting

• Reviewing account balances to know what is owed

• To understand financial obligations

• Not planning financial expenses

• To ignore them

• Spending more without considering financial status

• To increase spending

Tracking your income and expenses helps you (a)   patterns.

• Ignore

• Identify

• Complicate

• Forget

Match the following actions with their appropriate responses when stuck while budgeting.

• If you think buying more will solve your budgeting issues, what is your action?

• Ignore the budget.

• When you feel overwhelmed and want to quit, what should you do?

• Spend more

• When you need guidance on budgeting, what should you consult?

• Refer to budgeting tips

• If you choose to disregard your financial plan, what are you doing?

• Give up

Budgeting encourages you to put your money to work in the best way possible and helps you identify what's ______ up too much of your cash.

The zero-based budgeting system assigns every dollar a (a)   . A) Debt B) Purpose C) Expense D) Income.

• Debt

• Purpose

• Expense

• Income

Match the following descriptions with their corresponding budgeting concepts.

• Tracking your spending habits

• A framework for how you budget

• Using software to manage your budget

• A tool for online budgeting

• Automatically transferring money to savings

• A way to track expenses

• Setting up a structured plan for managing finances

• A method to automate savings

Fill in the blank: If you have other types of money coming in, such as from side gigs, subtract anything that reduces that income, such as taxes and business ______.

Match the following benefits with their descriptions.

• Receiving a cash bonus immediately after signing up for a savings plan.

• It reduces your current expenses.

• Contributing to a 401(k) can result in additional contributions from your employer.

• It offers free money through employer matching.

• Lowering your taxable income by contributing to a retirement account.

• It increases your debt.

• Taking out a loan to invest in a retirement account.

• It provides immediate cash.