Budgeting

Which of the following is false about budgets?

• keeps you from overspending

• shuts down risky spending habits

• gets you approved faster for loans

• helps you plan your future purchases

While having savings won't make you rich, it is recommended that you have an emergency fund of ____ months of expenses put aside.

• 1-2

• 3-5

• 6-12

• 3-6

Why is it important to review your budget at the end of the month?

• To adjust your monthly allowance

• To understand your spending habits

• To set new goals for your savings

• To make a new shopping list

What is the first step in managing your budget?

• Saving leftover coins

• Making a shopping list

• Choosing affordable meals

• Reviewing your spending

a plan outlining an estimate of expected income and expenditure

for a given period of time

• foreshadow

• evidence

• conversion

• budget

What is a good strategy for managing irregular income?

• Spend less during months with lower income

• Use credit cards to cover shortfalls

• Create a budget based on average income

• Avoid saving until income stabilizes

What should you do if you consistently spend more than you earn?

• Continue spending as usual

• Borrow money to cover the deficit

• Adjust your budget to cut unnecessary expenses

• Increase your fixed expenses

How often should you review and adjust your budget?

• Once a year

• Every month

• Only when you get a raise

• Never, once a budget is set it should not be changed

Why should you calculate a daily budget?

• To avoid buying things impulsively

• To make shopping easier

• To control your monthly spending

• To save leftover coins

What is the purpose of saving a small amount daily?

• To use for shopping

• To keep as an emergency fund

• To spend on internet data

• To buy snacks