Financial Literacy Trivia: Budget

There are many misconceptions when it comes to the topic of Budgets and budgeting. See if you can answer these 3 questions.

Subject: Budget

1. Good money management involves having enough money to cover all your __ __ __ __ __, while purchasing __ __ __ __ __ only when you have extra money to do so.

2. True or False?
A budget is only for those who are poor.

3. Which of the following are benefits to budgeting?
a. Control
b. Organization
c. More Money
d. Opportunities
e. All of the Above

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Answers:

1. NEEDS / WANTS 

NEED: Something you must have for survival -- something you cannot live without. i.e Food, Clothing, and Shelter

WANT: Something you would like to have -- something not absolutely necessary for your survival, but that you would enjoy having. i.e. iPods, designer clothes, vacations, Xboxes

2. False

A budget is simply a plan for how to handle your money, a roadmap to give you the money to live the lifestyle you want. 

3. (e) All of the Above

Control - Knowing exactly how much money you have at any given point, put your in the financial driver's seat. 

Organization: Keeping your finances in order is vital, and having a financial plan keeps you organized. 

More Money: Working within a budget will leave you with more money every month. 

Opportunities: Sticking with your budget will open up many financial windows of opportunity.