Mastering Your Budgeting Skills

What is the primary purpose of creating a budget?

• To track past expenses

• To plan future spending

• To increase income

• To reduce taxes

Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

If you earn £2,000 per month and want to save 20% of your income, you should save (a)   each month.

• £200
• £300
• £400
• £500

Which of the following is an example of a variable expense?

• Mortgage payment

• Utility bills

• Car insurance

• Subscription services

What is the term for the difference between your income and expenses?

• Net income

• Gross income

• Disposable income

• Budget surplus

If you have a budget deficit, what does it mean?

• Your income is greater than your expenses

• Your expenses are greater than your income

• You have no savings

• You have a balanced budget

One of the benefits of budgeting is that it (a)   .

• It guarantees financial success
• It helps identify unnecessary expen
• It eliminates all debt
• It increases your income

What is the recommended percentage of income to allocate towards housing expenses?

• 10%

• 20%

• 30%

• 40%

If you want to save £1,200 in a year, how much should you save each month?

• £50

• £75

• £100

• £150

Which of the following is a strategy to reduce expenses?

• Increase your income

• Use credit cards more often

• Cut back on non-essential spending

• Take out a loan