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Financial literacy

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Financial literacy
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  • What is a budget A budget is a place where you can put how much money you can spend per expense
  • A budget is a template or format or grid,etc for which you list out all of your non changing expenses and your allowed monthly payments that wont make you go broke.
  • Make sure when you put in the amount of money you will spend per expense and the calculation of all the expense result in to a negative number means you will go in debt so the budget will help you not have that happen
  • The importance of a balanced budget is not to make money managing more difficult it is there so you don't go broke. If you see a negative number in your final calculations you are going to go in debt you are spending to much and in your final calculations you see a positive number you need to add some money to your most needed expenses like housing or utilities
  • Why is it important to have a balanced budget?
  • It is important to have a balanced budget because you need to know where your money is going and how much of it you are spending because you want the end total to be 0 and that happens by not putting in the wanted amount per expense but the executable amount like $75 for wants but $600 for housing
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