spending plans test

Question 1

spending plan

Answer 1

an income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time; a budget

Question 2

past
present
future

income and expense statement

Answer 2

past

Question 3

statement of financial position

Answer 3

present

Question 4

spending plan

Answer 4

future

Question 5

why is a spending plan an important part of financial planning?

Answer 5

helps manage your money in a positive manner

increases net worth

helps set and reach goals

analyzes the opportunity costs of your trade-offs to maximize financial well-being

Question 6

step 1

Answer 6

tracker current income and expenses

Question 7

step 2

Answer 7

personalize your spending plan

Question 8

step 3

Answer 8

allocate money to each category

Question 9

step 4

Answer 9

implement and control

Question 10

step 5

Answer 10

evaluate and make adjustments

Question 11

1: why is tracking income and expenses an important part of creating a spending plan?

Answer 11

ensures spending plan is realistic

Question 12

2: what are two methods that may be used to develop a spending plan?

Answer 12

money management computer software

applications

Question 13

what time period do most people use for their spending plan?

Answer 13

usually concurrent with pay period

Question 14

why are categories different for everyone’s spending plan?

Answer 14

referring tracking from income and expense statement

categories may need to be changed

Question 15

3: what are three things to consider when determining how much money to allocate to each category? explain

Answer 15

trade-offs and opportunity costs

goal

contractual expenses

Question 16

4: what are two rupees of control systems?

Answer 16

money management computer software

envelope system

Question 17

5: why is evaluating and adjusting a spending plan important?

Answer 17

can make a better income