Understanding Budgeting Basics

What is one of the most basic, yet powerful, tools you can use to manage your money?

• Investing

• Budgeting

• Shopping

• Saving

Complete the sentence: Budgeting is important because it helps you to ______.

• Spend more

• Save money

• Ignore expenses

• Increase debt

Why is it important to create a budget?

• Helps track expenses

• Increases income

• Reduces taxes

• Eliminates all debts.

How often should you review your budget?

• Once a year

• Every five years

• Monthly

• Never

What is the main purpose of creating a budget?

• To track your spending habits

• To ensure you spend all your money

• To plan for future expenses and savings

• To avoid paying taxes

What is a common mistake people make when budgeting?

• Not tracking expenses

• Underestimating expenses

• All of the above

• Overestimating income

Which of the following is a benefit of sticking to a budget?

• More impulsive spending

• Better financial control

• Increased financial stress

• Higher debt levels

What should you do if your expenses exceed your budget?

• Increase your expenses

• Stop saving money

• Ignore the budget

• Adjust your budget or reduce expenses

Which of the following can help you stick to your budget?

• Increase your debt

• Ignore your spending habits

• Set realistic goals

• Do not keep track of your expenses

What should you do if you have a surplus in your budget?

• Ignore it

• Spend it immediately

• Save or invest it

• Increase your expenses