Mastering Your Budget Basics

What is the primary purpose of creating a personal budget?

• To track your daily activities

• To manage your income and expenses

• To increase your credit score

• To plan your meals

Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Dining out

What is the first step in creating a monthly budget?

• Tracking your expenses

• Setting financial goals

• Calculating your income

• Saving for emergencies

Which tool can help you track your expenses effectively?

• A calendar

• A budgeting app

• A cookbook

• A social media account

What is the recommended percentage of income to save for future goals?

• 5%

• 10%

• 20%

• 30%

Which of the following is a variable expense?

• Mortgage payment

• Utility bills

• Car insurance

• Subscription services

What does a credit score represent?

• Your annual income

• Your financial health and creditworthiness

• Your total savings

• Your monthly expenses

Which of the following actions can improve your credit score?

• Missing payments

• Increasing your credit card balance

• Paying bills on time

• Closing old credit accounts

What is an emergency fund?

• Money set aside for vacations

• Money set aside for unexpected expenses

• Money set aside for shopping

• Money set aside for dining out

How often should you review your budget?

• Once a year

• Every six months

• Monthly

• Weekly