Introduction to Budgeting

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Show your work for each problem.

1.
What is a budget?
1. a)Money you borrow from others
2. b)A plan for spending and saving money
3. c)A type of bank account
4. d)A list of things you want to buy
2.
Which of these is an example of income?
1. a)Paying for a bus ride
2. b)Buying a movie ticket
3. c)Receiving allowance from parents
4. d)Spending money on snacks
3.
Sarah has 100 euros. She spends 60 euros and saves the rest. How many euros does she save?
4.
Alex's monthly income is 80 euros. His expenses are 50 euros and his savings are 25 euros. What is his balance? (Enter a positive or negative number)
5.
What does it mean if you have a budget deficit?
1. a)You have extra money left over
2. b)You're saving too much money
3. c)Your budget is perfectly balanced
4. d)You're spending more than you earn
6.
Using the 50/30/20 rule, how much should someone with 400 euros monthly income spend on needs (50%)?
7.
Lisa earns 250 euros monthly. She wants to save 20%. How many euros should she save each month?
8.
Which is an example of a fixed expense?
1. a)Monthly phone bill of 30 euros
2. b)Going to the cinema
3. c)Buying new clothes
4. d)Buying snacks at school
9.
Marco has 300 euros monthly income. He plans: Needs 150 euros, Wants 100 euros, Savings 80 euros. Does his budget balance? If not, what's the deficit or surplus?
10.
Apply the 50/30/20 rule to a 600 euro monthly income. Calculate the amount for each category.
11.
If you save 15 euros every week, how much will you have saved after 8 weeks?
12.
Emma's budget is: Income 400 euros, Needs 200 euros, Wants 120 euros, Savings 80 euros. Her phone breaks and costs 100 euros to fix. How should she adjust her budget this month?
13.
A family spends 35% of their income on housing. If they earn 2,800 euros monthly, how much do they spend on housing?
14.
Carlos wants to save 75 euros for a new game. He can save 12 euros per week. How many weeks will it take, and how much extra will he have?
15.
Which is the best strategy when you get a raise (earn more money)?
1. a)Stop budgeting since you have more money
2. b)Keep expenses the same and increase savings
3. c)Spend all the extra on entertainment
4. d)Immediately increase spending on wants
16.
Sophie earns 500 euros monthly. She spends 40% on needs, 35% on wants, and saves the rest. How much does she save, and what percentage is that?