Budget

What is the Budget Rule?

• 50/30/20

• 50/30/10

• 40/30/20

• 50/20/20

50% of the Budget Rule represents

• Wants

• Needs

• Savings

30% of the Budget Rule represents

• Wants

• Needs

• Savings

20% of the Budget Rule represents

• Savings

• Needs

• Wants

When calculating a Budget, you should use your

• Gross Pay

• Net Pay

• Savings

• Allowance

A budget is a detailed estimate of income and expenses for a specific period of time. It helps control your money

• True

• False

Preparing a budget will help you with

• Understanding your income

• Look at what you own and owe

• Evaluate how much you are spending

• All of the above

Savings is the amount of money you put aside for future use

• True

• False

What is a good strategy to help you save?

• 1st, spend money on all expenses; put the rest into saving

• Tap into your savings on a regular basis to purchase small items, like snacks

• Pay yourself first - set aside money for savings each month

• Keep your spending and saving money together in 1 account

What is the primary purpose of creating a budget?

• To track your spending habits

• To ensure you spend all your money

• To plan for future expenses and savings

• To avoid paying taxes