Creating a Personal Budget
Learning Objective
I can create a personal budget that tracks income and expenses.
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 should look back at your spending, budget for fixed expenses, and budget for variable expenses.
According to the 50-20-30 rule, 50% of your income should go to essential expenses, 20% should go to savings and debt, and 30% is for lifestyle choices.
Practice Questions
This lesson includes 12 practice questions to reinforce learning.
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1. What is the first step in creating a personal budget?
2. List three potential sources of income that a student might have.
3. Why should credit cards NOT be considered a form of income?
...and 9 more questions
Educational Video
7 Steps on How to Create a Budget
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