What Is Budgeting - Financial Literacy - أول ثانوي

3.2 What Is Budgeting

Learning Objective What Is Budgeting?

Key Terms What Is Budgeting?

Budgeting

3.2 What Is Budgeting

What regular bills does a house- hold need to budget for?

To create a budget:

3.2 What Is Budgeting

Remember that a budget is a plan. Your actual income, savings,

3.2 What Is Budgeting

Preparing a Budget

Needs can be estimated based on bills, etc.,

3.2 What Is Budgeting

Why might your spending not be exactly as planned?

Estimate Income

Estimate Expenses

3.2 What Is Budgeting

Are these realistic figures for you?

Expenses

3.2 What Is Budgeting

Variable expenses change depending on a number of factors as described below.

Examples of variable expenses are:

Plan Savings

Explain whether you would rather reduce spending on lunches or on entertainment.

3.2 What Is Budgeting

Balance the Budget

Preparing a Budget Analysis

3.2 What Is Budgeting

FIGURE 3.2.2 Personal Budget Variances for a Month

It is not calculated by using the previous allowance (+25%) and other (−25%) variances, as these would cancel each other out.

3.2 What Is Budgeting

However, if the expenses figure is calculated and the result is a positive

How would a budget help you to be more financially responsible?

Which of the following is NOT relevant when planning a budget?

Which of the following approaches should NOT be used when creating a budget?

If your savings plus your expenses exceed your income, you can spend more money on variable expenses.

Which of the following is NOT an example of a variable expense?

A financial plan guarantees you cannot overspend.