Budgeting Basics and Strategies

What is the primary purpose of a budget?

• To track how much money you make, spend, what you spend it on, and how much you save.

• To ensure you spend all your money each month.

• To only save money and never spend it.

• To help you earn more money.

According to the 50/30/20 rule, what percentage of your income should be allocated to savings?

• 50%

• 30%

• 20%

• 10%

If you need to reduce your spending to balance your budget, which category should you typically look to cut first?

• Needs

• Savings

• Wants

• Income

What is the first step in creating your own budget?

• Prioritize your spending.

• Set some financial goals.

• Figure out your total monthly income.

• Divide your income into percentages.