Basics Beginner: Budgeting

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1.
A budget surplus means you have spent too much of your income.
Choose wisely. There is only one correct answer.
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.
2.
If you spend more than the net income you make in a month, you will have to _________.
Choose wisely. There is only one correct answer.
Any of the above. The money has to come from somewhere. Dipping in to your savings account steals money you have allocated for other financial goals. Borrowing by buying products using a credit card gets you off the hook from being short for the month but causes you to go into debt and carry a loan balance at a very expensive interest rate. Being late on a bill is never a good idea and can affect your credit score.
3.
If you decide to use an online budgeting tool, it is safer to use one whose URL starts with _______.
Choose wisely. There is only one correct answer.
Https. The 's' in 'https' stands for 'secure.' It means that the Website secures your data.
4.
A shirt is an example of a _______. A shirt with your favorite musician on it is a _______.
Choose wisely. There is only one correct answer.
Need / want. The shirt is a need because you need it to survive. But adding your favorite musician turns it into a want.
5.
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.
Choose wisely. There is only one correct answer.
True. You could also earn more money, but it may be easier to change your spending habits.