ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Spending more money than I have planned.
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Buying an item that looks good to me, even if I do not need it.
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Buying an item that is included in my spending plan.
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Always shopping at the most expensive stores.
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Detailed explanation-1: -A spending plan should include all of your money coming in, money going out, and money put towards savings. True, in addition to regular monthly payments such as rent and bills, a spending plan should also include irregular payments such as family trips, medical co-pays and deposits to savings.
Detailed explanation-2: -Consumption, investment, government, and net exports make up the four types of expenditures.
Detailed explanation-3: -Financial responsibly means doing what you have to do to take care of your needs and the needs of your family. To make this happen, your focus should be internal. The neighbors aren’t paying your bills, so their spending habits shouldn’t dictate yours or set the bar for your standard of living.
Detailed explanation-4: -Basically, a budget is a spending plan that maps out the amount of income versus the amount of expenses during a specific period of time.