Which of the following statements about budgeting is TRUE?

You should always prioritize entertainment and wants first when sketching out a budget plan.

Budgeting is only necessary when you are planning on attending college.

You should use your net income (income after taxes have been taken out) to create a more accurate budget.

Creating a budget will automatically give you a higher interest rate at your local bank or credit union.

Question

Sheldon Patton

Business

3 June, 12:14

Which of the following statements about budgeting is TRUE?

You should always prioritize entertainment and wants first when sketching out a budget plan.

Budgeting is only necessary when you are planning on attending college.

You should use your net income (income after taxes have been taken out) to create a more accurate budget.

Creating a budget will automatically give you a higher interest rate at your local bank or credit union.

+1

Answers (1)

Know the Answer?

Darius Sullivan · Answer 1

The correct answer is letter "C": You should use your net income (income after taxes have been taken out) to create a more accurate budget.

Explanation:

Individuals' net income represents the actual amount of money they will have available for spending. It is calculated by subtracting federal taxes from individuals' gross income. Creating a budget based on the net income is more accurate since people will estimate their expenditures and savings considering the amount of money they have in their pockets.