ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The goal for both is to have less money coming in than going out.
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They both have the same ratio of income and expenses.
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Both can save money by earning less than they spend.
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Both tend to spend their money on the same things.
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Detailed explanation-1: -In what way is a kid’s budget similar to an adult’s budget? The goal for both is to have less money going out than coming in. Both have about the same ratio of income to expenses. Both kids and adults tend to spend their money on the same things.
Detailed explanation-2: -In its simplest form, a budget plans for and compares income and expenses over a specified time period. Budgets require you to subtract expenses from income. If you have money left, you have a surplus.
Detailed explanation-3: -A budget can help you purchase anything you want. A budget can help you keep track of your money. A budget can help you make plans to reach your financial goals. A budget can help you decide the importance of your expenses.
Detailed explanation-4: -A budget is simply a spending plan that takes into account estimated current and future income and expenses for a specified future time period, usually a year. Having a budget keeps your spending in check and makes sure that your savings are on track for the future.
Detailed explanation-5: -Step 1: Calculate your net income. The foundation of an effective budget is your net income. Step 2: Track your spending. Step 3: Set realistic goals. Step 4: Make a plan. Step 5: Adjust your spending to stay on budget. Step 6: Review your budget regularly.