Personal Finance Courses: Budgeting

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1.
Making a decision to purchase something based on your wants is less expensive than basing it on your needs.
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False. Wants are generally more expensive. You may need to buy a pair of jeans, and may want a $150 pair of designer jeans but you only need jeans that cost under $40.
2.
The purpose of a budget is to help you plan how to spend and save money.
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True. Budgets are valuable tools that help you stay on top of your money.
3.
Reasons why groceries are considered a variable expense include which of the following?
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You can choose what and how much you need to buy. You have many choices of different types of meats, vegetables, cereals, etc. For example, you don't need to eat steak once a week. You can make chicken or pork at a fraction of the price.
4.
Net income equals gross income minus _______.
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All payroll deductions including taxes withheld. This is the amount you have left to save and spend.
5.
If you are using an online budgeting tool that is linked to your financial accounts, reviewing how your information is securely maintained is important.
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True. Ensuring you are dealing with a known company that describes how they keep your information secure and private is critical. Make sure the URL starts with 'https' instead of 'http' and look for the site to have a green address bar and lock icon.