What is a budget? Flashcards
What is a budget?
A budget is a plan that helps you manage your money. It shows you how much money you have, how much money you need to spend on different things, and how much money you can save or use for other goals.
Why do I need a budget?
Money is a limited resource. A budget helps prioritize expenses and choose what is most important for you and your family.
What is income?
Income is the money you earn or receive from different sources, like your allowance, gifts, or jobs.
What are expenses?
Expenses are the money you spend on different things, like food, clothes, bills, or entertainment.
How does a budget help track income and expenses?
A budget helps you see how much money you have and where it goes every month.
What are goals in the context of budgeting?
Goals are the things you want to do or have with your money, like saving for a bike, a college fund, or a vacation.
How can a budget help you set and achieve your goals?
A budget can help you plan how much money you need and how long it will take to reach your goals, as well as adjust spending habits to save more.
What is debt?
Debt is the money you owe to someone else, like a bank, a store, or a friend.
Why can debt be a problem?
Debt can cost more money in interest and fees, damage your credit score, or cause stress and conflict with friends and family.
How can a budget help avoid or reduce debt?
A budget helps you spend less than you earn, pay off your bills on time, and avoid borrowing money without a clear repayment plan.
Fill in the blank: A budget can help you make smart decisions with your money and avoid problems like _______.
overspending
Fill in the blank: A budget shows you how much money you have, how much money you need to spend on different things, and how much money you can _______.
save
What is the first step in planning a budget?
Your budget needs to be something that you can look at and refer to frequently.
What are the multiple ways of building a budget?
- Pencil and paper
- Printable sheets on the internet
- Spreadsheet
- Apps
How can you use pencil and paper to create a budget?
Write down your income and expenses and subtract your expenses from your income.
What categories can you divide your expenses into when using pencil and paper?
- Needs
- Wants
- Savings
What is a benefit of using printable budget sheets from the internet?
They may have different formats and features, such as charts, graphs, or tips.
What software can you use to create a budget spreadsheet?
- Excel
- Google Sheets
- Numbers
What can you do with a budget spreadsheet?
Enter your income and expenses in different cells and use formulas to calculate and compare numbers.
What is one advantage of using apps for budgeting?
Apps can connect to your bank account and automatically update your income and expenses.
Name three budgeting apps mentioned.
- Empower
- YNAB
- Mobills
What features might budgeting apps provide?
- Alerts
- Reminders
- Suggestions
Fill in the blank: You can divide your expenses into categories such as needs, ______, and savings.
wants
True or False: You can create a budget using only pencil and paper.
True
Fill in the blank: Budgeting apps can help you stay on track and reach your ______.
goals
