Creating a Personal Budget
Learning Objective
I can create a personal budget and explain how it helps manage finances.
Key Concepts
The first step in creating a budget is to track your income and expenses using a money journal.
When determining your expenses, you can look back at past checking or credit card statements, look forward to budget for fixed expenses, and use your money journal to analyze spending.
The 50-20-30 rule suggests allocating 50% of your income to essential expenses, 20% to savings and debt repayment, and 30% to lifestyle choices.
Practice Questions
This lesson includes 12 practice questions to reinforce learning.
View questions preview
1. What is the first step in creating a personal budget, according to the video?
2. Why is it important to track both income and expenses when creating a budget?
3. According to the video, which of the following can be considered income?
...and 9 more questions
Educational Video
7 Steps on How to Create a Budget
Great Lakes