Q1: Lesson 3-5 | Budgeting

Question 1

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.

Answer 1

Budgeting

Question 2

Important of budgeting

Answer 2

• 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

Question 3

Principles of budgeting

Answer 3

• 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

Question 4

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

Answer 4

Budget

Question 5

Elements of a Budget

Answer 5

• Food

-Shelter and other related needs

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

Question 6

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

Answer 6

Fiscal discipline