Financial Literacy - Budget Review

Money going out.

Rent is considered a fixed expense.

Income and spending must balance each other.

A common intermediate term goal would be saving for your first born's college education.

A personal budget should be planned for a specific period of time.

You can think of PYF as a bill you owe to yourself.

Flexible expenses stay about the same every month.

Bills or expenses that can change over the course of time.

Which of the following accounts is the best place to keep money in an emergency.

A plan for managing your money during a given period of time.

Movement of the money you receive and the money you spend.

In case you lose your job tomorrow, how much should you have in an emergency fund?

Expenses that aren't paid every month and can be either fixed or variable.

Most short-term goals are based on activities over the next two or three years.

When the cost of a service outweighs its benefits, it is a good purchase.

You must be able to differentiate between your needs and wants.

The budgeting process ends with monitoring current spending.

An example of a periodic expense is...

Another term for budget.

A car payment is an example of a variable expense.

A mortgage payment would count on your budget as a...

Flexible expenses can change every month.

Which of the following is NOT a smart way to stay on budget?

Bills or expenses that have a set dollar amount and are the same every month.

How you handle money coming in and money going out.

Money coming in.

The budgeting process starts with monitoring current expenses and income.