2 Fast 2 Curious: Understand Budget & Income

The cost of living impacts financial choices by:

• Increasing the need for budgeting and saving

• Decreasing the importance of financial planning

• Having no effect on financial decisions

• Making luxury spending more feasible

What are the two types of expenses?

• Fixed and Variable

• Direct and Indirect

• Short-term and Long-term

• Capital and Revenue

What is the definition of 'Cost of Living'?

• The amount of money needed to sustain a certain standard of living

• The total cost of owning a car

• The expenses related to traveling abroad

• The price of luxury goods

Which of the following is a key factor of cost of living?

• Education

• Housing

• Entertainment

• Travel

Fill in the blank: _______ includes rent or mortgage payments.

• Housing expenses

• Utilities

• Groceries

• Transportation

Which of the following is considered a 'Utility' expense?

• Internet

• Clothing

• Entertainment

• Travel

What factors contribute to the higher cost of groceries and dining in California?

• The overall cost of living is elevated in California.

• California has an abundance of grocery stores.

• The state enforces a lower minimum wage.

• Weather conditions in California impact food pricing.

A budget is:

• A plan for saving and spending money

• A type of investment

• A financial institution

• A loan agreement

Why is it important to have a budget?

• To manage finances effectively

• To increase expenses

• To avoid saving money

• To spend without limits

The key components of a budget are:

• Income, Expenses, Savings

• Assets, Liabilities, Equity

• Revenue, Costs, Profit

• Cash, Investments, Loans