Personal Finance Courses: Budgeting

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1.
The purpose of a budget is to help you plan how to spend and save money.
Choose wisely. There is only one correct answer.
True. Budgets are valuable tools that help you stay on top of your money.
2.
A budget surplus means you have spent too much of your income.
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False. A surplus occurs when you are spending and saving less than your net income. This is a good thing. You have more money to allocate to your financial goals.
3.
Having mostly fixed expenses instead of variable expenses will keep your expenses low.
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False. Fixed expenses often can be for your most expensive needs or wants. The way to keep fixed expenses lower is to buy what you need rather than what you want.
4.
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.
5.
In your budget's savings plan section, you will have short-term goals, intermediate-term goals, and long-term goals to save for. Which of these would a retirement plan fall under?
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Long-term goals. A retirement plan is generally more than 10 years away, so it is a long-term goal.