Lesson 2 (Finals)

• What is the purpose of budgeting?

  Estimate income and expenditure over time
• Why is financial control important in budgeting?

  It helps track income and expenses
• How does budgeting assist in goal setting?

  It allows prioritization of financial goals
• What should students demonstrate an understanding of in finance?

  Basic financial concepts and calculations
• How does budgeting help avoid debt?

  By monitoring spending to prevent overspending
• Why is budgeting essential for individuals?

  It helps track income and expenses
• What are the key reasons for budgeting?

  • Financial control
  • Goal setting
  • Avoiding debt
  • Emergency preparedness
  • Improved savings
• What role does budgeting play in emergency preparedness?

  It allocates funds for unexpected expenses
• What does income refer to?

  Money received regularly for work or investments
• How does budgeting improve savings?

  By allocating income for savings or investments
• What are the types of income?

  1. Salary or wages
  2. Self-employment income
  3. Investment income
  4. Pensions and retirement accounts
• What does income refer to?

  Money received for work or investments
• Why is understanding income sources important?

  It forms the foundation for budgeting
• What are the types of income?

  1. Salary or Wages
  2. Self-Employment Income
  3. Investment Income
  4. Pensions and Retirement Accounts
• What do expenses refer to?

  Costs incurred in running a household or business
• Why is understanding income sources crucial for budgeting?

  It forms the foundation for managing expenses
• What do expenses refer to?

  Costs incurred in running a household or business
• What are the categories of expenses?

  • Fixed expenses
  • Variable expenses
  • Discretionary expenses
  • Essential expenses
  • Debt payments
  • Unexpected expenses
• What are the categories of expenses?

  • Fixed Expenses
  • Variable Expenses
  • Discretionary Expenses
  • Essential Expenses
  • Debt Payments
  • Unexpected Expenses
• What are fixed expenses?

  Regular costs that do not change in amount
• What are variable expenses?

  Costs that fluctuate from month to month
• What are fixed expenses?

  Regular costs that do not change in amount
• What are variable expenses?

  Costs that fluctuate from month to month
• What are discretionary expenses?

  Non-essential spending that can be adjusted
• What are discretionary expenses?

  Non-essential spending that can be adjusted
• What are essential expenses?

  Necessary costs for daily living
• What are essential expenses?

  Necessary costs for daily living
• What are debt payments?

  Payments made toward loans or credit cards
• What are debt payments?

  Payments made toward loans or credit cards
• What are unexpected expenses?

  Unplanned costs that arise unexpectedly
• What are unexpected expenses?

  Unplanned costs that arise unexpectedly
• Why is tracking expenses important?

  It helps identify spending patterns and savings
• Why is tracking expenses important?

  It helps identify spending patterns and savings
• What does markup refer to?

  Amount added to cost price to determine selling price
• What does markup refer to?

  Amount added to cost price for selling
• How is markup typically expressed?

  As a percentage of the cost
• How is markup typically expressed?

  As a percentage of the cost
• What is the formula for markup?

  Markup = Selling Price - Cost Price
• What is the formula for markup?

  Markup = Selling Price - Cost Price
• How is markup percentage calculated?

  Markup Percentage = (Selling Price - Cost Price) / Cost Price x 100