What Is A Budget?

Question 1

What is a budget?

Answer 1

A plan for all income & expenses

Question 2

What types of goals should be made(4)

Answer 2

Personal & financial
Short & long term

Question 3

Reasons to develop a budget?(6)

Answer 3

Financial security, increase choices and quality of life, cover expenses without using quality of life, prevent financial trouble and to have an emergency fund.

Question 4

What is income?

Answer 4

Money earned

Question 5

Student income(4)

Answer 5

Job, parents, scholarships, loans and bursaries

Question 6

What are the types of spending(3) and what are they?

Answer 6

Fixed: regular payments
Variable: payments that fluctuate
Seasonal

Question 7

What percent of monthly income should be saved?

Answer 7

~10%

Question 8

Steps to developer a budget(4)

Answer 8

Track and calculate all spending and categorize.
Calculated net income
Plan our monthly expenses
Monitor and adjust

Question 9

What is net income?

Answer 9

Dispossible income

Question 10

Budget guidelines(4)

Answer 10

Spend less than you earn
Keep goals in mind
Use 2-3 bank accounts
If possible limit spending on needs (~50% of net income)

Question 11

Budget guidelines(4)

Answer 11

Spend less than you earn
Keep goals in mind
Use 2-3 bank accounts
If possible limit spending on needs (~50% of net income)