MAKING A BUDGET

What is one way to save money according to the passage?

• Putting money into a savings account

• Spending on entertainment

• Taking a loan from a bank

• Buying luxury items

How does a budget help in managing debt?

• By allocating funds to pay it off more quickly

• By increasing impulsive purchases

• By ignoring debt payments

• By reducing income

What role do banks play in the economy as mentioned in the passage?

• Providing loans to businesses

• Increasing taxes

• Reducing employment

• Controlling government policies

Which of the following is a benefit of setting financial goals through a budget?

• Saving for a vacation

• Spending more on dining out

• Ignoring emergency funds

• Increasing debt

What is the purpose of including a line item for savings in a budget?

• Ensuring regular savings for future needs

• Increasing impulsive spending

• Reducing income

• Avoiding necessary expenses

How can a budget help in avoiding overspending?

• By tracking spending and staying within budgeted amounts

• By ignoring financial goals

• By increasing discretionary expenses

• By reducing income

What is the significance of tracking progress against a budget?

• It helps in staying on track with financial goals

• It increases financial stress

• It leads to more impulsive purchases

• It reduces financial flexibility