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Personal Finance Courses: Budgeting

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1.
All online budgeting tools cost money.
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False. Many of them are free to use.
2.
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.
3.
If you want to get ahead financially, which of the following should be true?
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Your expenses should be lower than your income. When your expenses are lower than your income, you can use the difference for saving and investing, thus enabling you to grow your money and get ahead.
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.
A shirt is an example of a _______. A shirt with your favorite musician on it is a _______.
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Need / want. The shirt is a need because you need it to survive. But adding your favorite musician turns it into a want.