ch 200 finance

Although the majority of Americans think budgeting is important, about\______ of Americans actually use a budget

35%

Which of the following is NOT a component of a budget?

credit score

Online budgeting apps are more effective than budgeting with pen and paper.

false

What are the Four Walls?

food, utilities, shelter, and transportation

How many categories should you have in your budget?

no limit; use as many as you need to keep your budget accurate!

How often should you create a budget?

monthly

If you get married, only one person is responsible for budgeting.

false

What does a budget show you?

how much money you plan to come in and out during the month

Detailed categories on your budget will help you make better spending decisions.

true

A budget says what will happen with your money, while a cash-flow statement shows what already happened.

true

How many months does it usually take for your budget to start working as a budget should?

three

Your money personality can affect your \_____.

attitude toward budgeting

Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of \_______ they have.

personal debt

Going to the movies is an example of what types of expenses?

discretionary and variable

Net income is the amount you get paid before taxes.

false

Why is tracking your expenses throughout the month important?

it gives you insight into weather you're sticking to the budget you set

What kind of money counts as income?

all money that you receive, including money from your job and gifts like birthday money

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

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

When is the right time to start creating and living by a budget?

right now: its never too early!

What should you do if you overspend in one category of your budget?

adjust your budget by removing money from other spending categories

Commission is when you make money based on the percentage of \_____.

total sales

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

The primary reason people don't budget is because they lack the behavior to stick to a budget.

true

Your monthly rent payment is an example of a variable expense.

false

The best way to budget is...

the best way that works for you

What is the envelope system?

its a method of budgeting that uses envelops labeled with specific budget categories for your cash

If you have an irregular income, budgeting won't work for you.

false

Why is budgeting so important?

It gives you control of your money and sets you up for financial success in the future