Understanding Budgeting

What is the primary purpose of creating a budget?

• To avoid paying taxes

• To track only your expenses

• To increase your monthly income

• To estimate your income and expenses over a period

Which of the following is considered a 'want' in a budget?

• Dining out

• Utilities

• Rent

• Groceries

How can a budget help you with large purchases?

• By eliminating all expenses

• By setting aside money in advance

• By increasing your salary

• By reducing your work hours

What is a common misconception about budgeting?

• It is only for people with financial problems

• It helps in making wise financial decisions

• It can prevent financial trouble

• It is beneficial for everyone

How does budgeting help manage stress?

• By eliminating all debts

• By keeping your finances on track

• By increasing your expenses

• By reducing your income