Budgeting

What should be considered when setting a budget?

Needs, wants, and savings

Which of the following is a benefit of using a budget?

- Helps to keep track of the money you receive - Helps to prioritize your spending - Helps reach short- and long-term financial goals

What is NOT a good way to prevent unnecessary spending?

Buy all of your wants at one time.

Which of the following is NOT a benefit of using a budget?

A budget can help you purchase anything you want.

An emergency fund should NOT be used for...

Going to the movies.

In addition to needs, what should you plan for first when creating a budget?

Recurring expenses

An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...

emergency fund spending.

The envelope method, notebook and pencil, and online software are all methods of .

tracking your spending

When setting a budget, you should consider...

financial goals, current expenses, and income.

How can you ensure you don't go over your budget?

Round up your expense estimates to add a buffer

Which of the following should NOT be considered when setting a current budget?

Future income

Which of the following is TRUE regarding unexpected expenses?

They should be planned for.

Which of the following expenses would be a good reason to spend money from an emergency fund?

Repair your laptop that you use for homework.

Which choice or choices best describes the purpose of an emergency fund?

- An emergency fund prepares you for unexpected expenses. - An emergency fund keeps you from borrowing money from friends and family. - An emergency fund removes the worry about expenses not in the budget.

When setting a budget, you can choose to make room for:

- Financial goals - Entertainment expenses - Charitable donations

Which of the following is NOT a good way to track your spending?

In your head

Which of the following statements is TRUE?

Recurring expenses are expenses that occur every month.

What is NOT true about unexpected expenses?

They do not occur if you have a budget.

What budgeting tip(s) would help you to stay on track financially?

What budgeting tip(s) would help you to stay on track financially?

Where should you look to find your current expenses when building your budget?

bank and credit statements