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Personal Finance Courses: Budgeting

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1.
Your financial institutions may already offer some budgeting tools.
Choose wisely. There is only one correct answer.
True. Many financial institutions provide budgeting software that is accessible when you log in to your account online.
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.
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.
You should avoid spending money on wants.
Choose wisely. There is only one correct answer.
False. Wants are okay to spend money on and may be items that we allow ourselves to pay for as a reward for hard work and saving. The key is to ensure you are not forgoing spending money on or saving for other needs not taken care of yet. In other words, what is the opportunity cost of paying for your want?