A budget is a financial plan that lays the groundwork for managing debt and saving for the future. First, you have to understand what makes up a budget in order to craft an effective one.
Watch the video to learn more about the Ingredients of an Effective Budget, then test your knowledge at the end of the lesson.
Which of the following is not a form of income?
A. Paychecks
B. Alimony
C. Electric bill
D. Investment gains
Gross income is the money you receive after taxes and other deductions are taken out of your pay.
A. True
B. False
Three types of expenses you should consider when building your budget include:
A. Fixed, Flexible, Discretionary
B. Fixed, Common, Unique
C. Flexible, Discretionary, Quarterly
D. Necessary, Unnecessary, Seasonal
Before you complete this lesson, fill the Budget Worksheet below with all your income and expenses: