Basics Beginner: Budgeting

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1.
When constructing a budget, where can you find information about your expenses?
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Bank statements, online banking, and credit card statement. Bank statements, online banking transactions, and credit cards all detail your spending transactions. Use these tools to create a written record of your expenses.
2.
If your expenses exceed your income in your budget, you may need to revise what you spend your money on, and how much you spend.
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True. You could also earn more money, but it may be easier to change your spending habits.
3.
Your financial institutions may already offer some budgeting tools.
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True. Many financial institutions provide budgeting software that is accessible when you log in to your account online.
4.
Any past debts you are paying on should be grouped under your expenses in your budget, even though you did not incur them this month.
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True. Even though your debts are ghosts of past expenses, you would include them among your current expenses in your budget.
5.
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.