ML FBLA Financial Literacy - Budgeting

What is a budget?

• A plan for saving money

• A plan for managing and spending money

• A loan from a bank

• A type of insurance

Why is budgeting important?

• It helps you track your expenses and save money

• It helps you avoid paying taxes

• It tells you how much money you can borrow

• It helps you decide what to buy in stores

What is an income?

• Money you spend each month

• Money you receive, usually from a job or allowance

• Money you owe to others

• Money you save in a bank account

What is an expense?

• The money you receive from a job

• The money you spend on things like food, clothing, and entertainment

• The money you borrow from the bank

• The money you save in a savings account

What is the first step in creating a budget?

• Deciding what to spend money on

• Calculating how much money you earn

• Writing down how much money you owe

• Setting up a savings account

What is a fixed expense?

• An expense that changes from month to month

• An expense that stays the same each month

• Money you save for emergencies

• Money you spend on fun activities

What is a variable expense?

• An expense that stays the same each month

• An expense that changes from month to month

• Money you earn from work

• An amount of money you save for retirement

What is the purpose of tracking your expenses?

• To make sure you are not spending more than you earn

• To buy things on sale

• To make sure you are paying off loans quickly

• To calculate how much money you owe

What is savings?

• Money you spend each month

• Money you set aside for future use or emergencies

• Money you borrow from a bank

• Money you give to others as a gift

What is the 50/30/20 rule in budgeting?

• 50% for rent, 30% for food, 20% for savings

• 50% for savings, 30% for rent, 20% for fun

• 50% for wants, 30% for needs, 20% for savings

• 50% for taxes, 30% for savings, 20% for entertainment