Which of the following is the most accurate description of budgeting?
Buying things for the lowest price on the market
Working out how much money is available for a purpose
Moving money between accounts
Borrowing money at a low interest rate
In the language of budgeting, what is ‘expenditure’?
How much money you have paid out over a certain period of time
How much money you earn over a month
All the interest you will earn over a year on a savings account
Which of the following would NOT belong to the regular expenditure of a family?
Rent payments
Internet bills
Cost of a washing machine
Utility bills (gas, electricity, water etc.)
You earn £1,000 per month. Your rent costs £400, food £100 and transport £100 per month. If you also spend £75 each month for clothing, £100 on eating out and £125 for everything else, how long will it take you to save £400 for a bicycle?
1 month
2 months
4 months
6 months
Which area of your budget would mortgage payments come under?
Variable expenses
Fixed expenses
Luxuries
Which of the following is not a good way to stay on budget?
Delay paying off the debt on your credit card
Make a grocery list before you go shopping
Use cash, when you can pay by a credit card
How would you calculate your disposable income (the money you can spend)?
Subtract your expenditure from your income
Sum your income and expenditure
Divide your income by your expenditure
Add your income and expenditure
How would you work out your monthly expenditure from weekly costs?