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Flashcards in Reasons for creating a budget Deck (14)
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1

What type of skills does a budget help individuals develop?

Good money management skills

2

How does a budget help individuals develop their money management skills?

By helping to identify total income and focusing spending on priority expenses

3

How does a budget make areas of overspending apparent?

As a budget requires the listing of all expenditure and the reviewing of receipts or bills

4

How does a budget avoid debt?

By making areas of overspending apparent

5

What can be avoided if areas of overspending are made apparent by a budget?

Debt can be avoided

6

What does budgeting reduce reliance on in order to pay for goods and services?

Credit cards

7

What is the affect of a reduced reliance on credit cards to pay for goods and services?

It helps to avoid debt

8

How does a reduced reliance on credit cards help to avoid debt?

As credit can incur high interest rates and repayment

9

What does a budget provide for individuals and families?

Provides financial security

10

How does a budget provide financial security?

As expenses such as bills will be paid which alleviates stress and worry

11

What does the saving element of a budget ensure?

It ensures that money is available to cover unplanned eventualities such as the loss of a job

12

How does a budget allow for unplanned eventualities?

Savings are made as part of a budget which cover unplanned eventualities

13

What does regular saving teach children?

It teaches children the value of money and money management skills

14

Outline the advantages for creating a budget
(6 points)

Money management skills

Areas of overspending become apparent

Reduced reliance on credit cards

Financial security

Allows for unplanned eventualities

Teaches children value of money and money management