Creating a Personal Budget Review

Which of the following refers to personal belongings which have value?

• Assets

• Liabilities

• Net worth

• Net profit

Place the following steps of creating a monthly budget in the correct order.

• 1. Gather financial statements 2. Record all sources of income 3. Create a list of monthly expenses 4. Break expenses into fixed and flexible 5. Total monthly income and expenses 6. Adjust expenses 7. Review the budget

• 1. Record all sources of income 2. Gather financial statements 3. Create a list of monthly expenses 4. Break expenses into fixed and flexible 5. Total monthly income and expenses 6. Adjust expenses 7. Review the budget

• 1. Gather financial statements 2. Create a list of monthly expenses 3. Record all sources of income 4. Break expenses into fixed and flexible 5. Total monthly income and expenses 6. Adjust expenses 7. Review the budget

• 1. Gather financial statements 2. Record all sources of income 3. Break expenses into fixed and flexible 4. Create a list of monthly expenses 5. Total monthly income and expenses 6. Adjust expenses 7. Review the budget

__________ is a personal asset.

• Credit card balance

• Mortgage

• Cash

• Rent

• $30,000

• $40,000

• $50,000

• $60,000

Which of the following are itemized summaries of the expected income and expenses for a defined period, typically one month?

• Assets

• Liabilities

• Budgets

• Finances

Which would be considered a short-term goal?

• Saving for college

• Saving for retirement

• Starting a new career

• Saving for a family vacation

Personal financial planning is the process of creating a ________ to spend and save ________. It also allows people to determine whether they will have enough money for their ________, and it allows people to spend and save with ________.

• financial plan, money, needs and wants, confidence

• shopping list, time, dreams and wishes, uncertainty

• budget, energy, goals and fears, hesitation

• schedule, resources, expenses and income, doubt

Budgets rely on balance.

• True

• False

Which of the following refers to individuals who do not consider money as a necessity and do not have much of an opinion on money?

• Flyers

• Security seekers

• Risk takers

• Spenders

In SMART, the “A” stands for “attainable.”

• True

• False