Q1: Lesson 3-5 | Budgeting Flashcards

1
Q

Is the process of allocating money for different purposes or uses. It is coordinating income and expenses, whereby specific amounts are allotted for specific uses, usually called items of expenditures.

A

Budgeting

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2
Q

Important of budgeting

A
  • It ensures that the money available is sufficient to meet expenses
  • It ensures that set goals for an individual, family, or business are attained
  • It instills fiscal or financial discipline
  • It serves as a training for the youth
  • It ensures that the set goals are realized
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3
Q

Principles of budgeting

A
  • The budget is planned to meet needs and wants
  • The budget realizes short-term and long-term goals
  • The budget should be planned according to the money available
  • Needs take priority over wants
  • Provisions for alternative methods and goals can be set up to meet emergencies
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4
Q

Is a written outline of the list of expenditures to be spent

A

Budget

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5
Q

Elements of a Budget

A
  • Food

-Shelter and other related needs

  • Clothing
  • Health Needs
  • Educational Needs
  • Social and Recreational Needs
  • Transportation and Other Miscellaneous Expenses
  • Contingency Fund
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6
Q

Is the ability to manage money and resources effectively and properly channel them to meet and realize personal and family needs

A

Fiscal discipline

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