Budgeting Answers

Take another look at this chart.If you were planning a budget, which amount would you use to record your income?

Which statements best summarize the principles you should use when budgeting? Check all that apply.Your discretionary spending should be a higher priority than mandatory spending.You need to be mindful of whether an expense is truly a need, or just a want.Spending on wants will enable needs to take care of themselves.The more you save, the more easily you can reach long–term goals.To create a budget, you need to start by determining your short–term and long–term goals.

Which statements best explain why income should be recorded at the beginning of a budget? Check all that apply.Income is the foundation for a budget.Budgets are based on variables, rather than on income.Putting income at the top helps to keep this number in mind.Placing income at the top allows expenses to be subtracted easily.Tracking income is more important than tracking expenses.

Complete these sentences to describe categories of budget expenditure items.

✔ variable fixed

A fixed expense is one for which the amount is , and it should be considered other expenses.

before✔ after

Discretionary spending is the most budget item and the easiest to change.

Complete these sentences to describe categories of budget expenditure items.