Personal Finance 1st Edition by Jack R. Kapoor

Exercise 17

1. What are the main purposes of a budget?

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2. How does a person’s life situation affect goal setting and amounts allocated for various budget categories?

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3. What are the main steps in creating a budget?

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4. What are commonly recommended qualities of a successful budget?

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5. What actions might you take when evaluating your budgeting program?

Action Application Ask two or three friends or relatives about the budgeting system they use for their spending records. Create a visual presentation (video or slide presentation) that communicates wise budgeting techniques.

Step 1 of 5

(1) The main purposes of a budget are to help you:

• Live within your income.

• Spend your money wisely.

• Reach your financial goals.

• Prepare for financial emergencies.

• Develop wise financial management habits.