Introduction to Budget

What is a budget?

• A plan for saving and spending money

• A type of bank account

• A financial institution

• A government policy

Which of the following is a primary purpose of creating a budget?

• To increase taxes

• To plan for future expenses

• To eliminate all debts

• To invest in stocks

What is a common component of a personal budget?

• Income

• Weather forecast

• Travel itinerary

• Social media plan

Which term describes the money left over after all expenses are paid?

• Deficit

• Surplus

• Debt

• Loan

What is the term for the amount of money you plan to spend on a specific category?

• Income

• Expense

• Allocation

• Revenue

Which of the following is a fixed expense?

• Rent

• Groceries

• Entertainment

• Clothing

What is a variable expense?

• An expense that changes in amount each month

• A fixed monthly payment

• A one-time purchase

• A tax deduction

Why is it important to review your budget regularly?

• To ensure it aligns with your financial goals

• To increase your income

• To avoid paying taxes

• To eliminate all expenses

Which tool can help you track your spending?

• Budgeting app

• Weather app

• Social media platform

• Video game

What is the first step in creating a budget?

• Identify your income

• List your debts

• Plan a vacation

• Choose a bank