Chapter 2 study guide (Personal Financial Responsibility)
Although the majority of Americans think budgeting is important, about _________ of Americans actually use a budget.
35%
What should you do if you overspend in one category of your budget?
Adjust your budget by removing money from other spending categories.
What kind of money counts as income?
All money that you have receive, including money from your job and gifts like birthday money.
Your money personality can affect your __________________
Attitude towards budgeting
What is a good way to make sure you're creating a budget that's realistic?
Check your calendar so you can plan for upcoming monthly expenses.
Which of the following is NOT a component of a budget
Credit score
Going to the movies is an example of what types of expenses?
Discretionary and Variable
What is a way to stay accountable to reaching your financial goals?
Finding a person you trust to help keep you on track with your money goals?
What are the Four Walls?
Food, utilities, shelter, and transportation
A common misconception is that budgeting will keep you from having fun, when in reality a budget...
Gives you permission to spend
The first priority in your budget should be ____________.
Giving
What does a budget show you
How much money you plan to come in and go out during the month
Why is budgeting so important?
It gives you control of your money and sets you up for financial success in the future.
Why is tracking your expenses throughout the month important?
It gives you insight into whether you're sticking to the budget you set.
What is the envelope system?
It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash.
How often should you create a budget?
Monthly
How many catergories should you have in your budget?
No limit; use as many as you need to keep your budget accurate.
Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of _____________ they have.
Personal debt
When is the right time to start creating and living by a budget?
Right now- it's never too early!
The best way to budget is....
The way that works best for you
How many months does it usually take for your budget to start working as a budget should?
Three
Commission is when you make money based on the percentage of ______________
Total sales
