Budgeting and Financial Management Concepts

The video tutorial explains the concept of budgeting, emphasizing the importance of spending less than you earn to save money. It covers how to calculate income and categorize expenses into essential and non-essential. The tutorial warns about the dangers of debt and provides tips for making smart spending decisions to avoid financial trouble. It encourages viewers to be mindful of their spending habits and to save towards goals.

What is the primary goal of maintaining a budget?

• To spend more than you earn

• To spend less than you earn

• To have more money going out than coming in

• To ensure you spend exactly what you earn

What is considered as income in a budget?

• All the money you borrow

• All the money you save

• All the money you earn over a period

• All the money you spend

Which of the following is an example of a fixed essential expense?

• Library membership fee

• Monthly grocery bill

• Cell phone bill

• Entertainment expenses

What can happen if you consistently spend more than you earn?

• You will have more income

• You risk going into debt

• You will have a balanced budget

• You will save more money

What is a potential consequence of being in debt?

• Financial stability

• Bankruptcy

• Increased savings

• Higher income

How can you reduce your variable expenses?

• By spending more on non-essentials

• By increasing your income

• By cutting down on unnecessary calls

• By ignoring your budget

What should you do with non-essential expenses?

• Ignore them

• Consider them as essential

• Increase them

• Be honest about their necessity

What is a strategy to save more money?

• Increase your non-essential spending

• Ignore your expenses

• Stick to your budget

• Spend more on entertainment

What is the benefit of saving money regularly?

• It decreases your income

• It helps in affording something you really want

• It leads to more debt

• It increases your expenses

What should you do if your study group wants to order pizza?

• Ignore the cost

• Ask if someone’s parents can cook

• Consider it an essential expense

• Order it without thinking