Get Certified for Free Browse courses

Personal Finance · Level 1 of 5 · Intro

Budgeting basics

Track income and spending, and build a simple budget you will keep.

Study notes

  1. A budget is a plan for your money: income in, spending and saving out.
  2. Start by tracking one or two months of real spending from bank and card statements.
  3. Fixed expenses (rent, insurance) stay about the same each month. Variable expenses (groceries, fuel, eating out) change.
  4. One popular starting guide is the 50/30/20 rule: about 50% of after-tax income to needs, 30% to wants, 20% to saving and extra debt payments. Adjust it to your life.
  5. Pay yourself first: move savings automatically on payday so it happens before spending.

Quiz: 6 questions

Choose one answer for each question, then check your answers. Score 5 of 6 to pass. Then enter your name and email to download a PDF certificate and have a copy emailed to you. Answers are graded in your browser.

1. Which is usually a fixed expense?

2. Under the 50/30/20 guide, how much of $4,000 after-tax pay goes to saving and extra debt payments?

3. The best first step for a new budget is to:

4. 'Pay yourself first' means:

5. Which is a variable expense?

6. A budget is best described as:

About this certificate: Certificates are issued by Get Certified for Free for passing a free online knowledge quiz. They are not accredited, licensed, government, academic, or professional credentials and do not confer a license. Read the full terms.