Budgets

A budget is a plan for spending and saving money.

• True

• False

The goal of a budget is to SPEND less than you EARN.

• True

• False

The goal of a budget is to SPEND more than you SAVE.

• True

• False

Why is it important to keep a budget?

• Budgets make sure you do not spend more money than you can afford.

• Budgets can help you save for large purchases.

• Budgets show you how much money you get and spend.

• All of the above.

What is a budget?

• A plan for making and spending money

• A list of things you want to buy

• A record of money you have saved

• A way to calculate your taxes

The manager of the flower shop wrote down all of his income and expenses to see what he has to spend and save. He is working on his…..

• Opportunity Cost

• Budget

• Incentive

What is the main purpose of creating a family budget?

• To ensure that expenses do not exceed income

• To keep track of the number of family members

• To calculate how much tax the family should pay

• To make sure the family buys everything they want

If someone makes $100,000 a year, how much do they spend on clothes?

Note: 25% = 0.25

Mathematical Equivalence

ON

Which is good advice for saving and spending money?

• Spend all of your allowance as soon as you earn it.

• Use a budget to plan how much money you can save.

• Try to buy things that you want before the things that you need.

• Buy things you use only once, and then throw them out.

A budget is a list of

• income and expenses

• things to buy

• how much to save

• needs and wants