Mastering Personal Budgeting Skills

What is a personal budget?

• A plan for spending and saving money based on income and expenses

• A list of all the things you want to buy

• A record of all the money you have ever spent

• A plan for borrowing money from friends

Why is it important to create a personal budget?

• To ensure you spend all your money

• To help manage your money and make informed financial decisions

• To keep track of your favorite stores

• To avoid paying taxes

Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

• 10%

• 15%

• 20%

• 25%

What is the first step in creating a personal budget?

• Spend money on entertainment

• List all your expenses and income

• Borrow money from friends

• Buy a new gadget

Which of the following is an example of a variable expense?

• Mortgage payment

• Utility bills

• Car insurance

• Subscription services

• $100

• $150

• $200

• $250

What does it mean to "balance" a budget?

• To make sure expenses are greater than income

• To ensure income equals expenses

• To spend all your money

• To save all your money

Which of the following is a benefit of saving money?

• You can buy anything you want immediately

• You have funds for emergencies and future needs

• You never have to work again

• You can lend money to everyone

• 10 weeks

• 12 weeks

• 15 weeks

• 20 weeks