Personal Budgeting

Play an AI-generated podcast conversation about this lesson

What is the monthly contribution in Kshs for a salary bracket of 20,000 to 24,999?

850

750 (correct)

600

800

What is the minimum salary bracket in Kshs for a monthly contribution of 1,200?

70,000

69,999

50,000

60,000 (correct)

What is included in taxable employment income?

Only cash payments

All cash payments and the value of non-cash benefits exceeding Ksh 3,000 per month (correct)

Only club entrance and subscription fees

Only non-cash benefits exceeding Ksh 3,000 per month

What is the effective date for taxing excess mileage reimbursement to employees?

1st July 2023 Signup and view all the answers

Who is required to deduct tax from employment income and remit it to the Kenya Revenue Authority?

Employers Signup and view all the answers

What is the purpose of the PAYE system?

To deduct tax from employment income and remit it to the Kenya Revenue Authority Signup and view all the answers

What is the primary purpose of personal financial planning?

To reduce financial uncertainties and worries Signup and view all the answers

What is a key benefit of having a personal financial plan?

To boost control of financial affairs Signup and view all the answers

What is one of the purposes of investing in personal finance?

To select securities for income and long-term growth Signup and view all the answers

What is a key aspect of managing risk in personal finance?

Adequate insurance coverage for risks Signup and view all the answers

What is a benefit of having a personal financial plan in terms of relationships?

It improves personal social relationships Signup and view all the answers

What is a key outcome of personal financial planning?

Financial independence Signup and view all the answers

What is the primary purpose of creating a budget?

To project realistic future financial behavior Signup and view all the answers

What type of expenditures may include capital improvements?

Nonrecurring expenditures Signup and view all the answers

What is an advantage of having a budget?

It helps reduce financial distress Signup and view all the answers

What is a benefit of budgeting in relation to financial goals?

It helps attain financial goals Signup and view all the answers

What type of incomes are earnings from wages, interest, or dividends?

Recurring incomes Signup and view all the answers

What is a key aspect of budgeting in relation to time?

Determining a frequency and time period for budgeting Signup and view all the answers

What is the primary goal of debt management?

To meet debt obligations in the short and long term Signup and view all the answers

What is the annual percentage rate (APR) expressed as?

An annual percentage of the required principal Signup and view all the answers

What is the prime rate primarily affected by?

The state of the economy and government fiscal policy Signup and view all the answers

What determines how much above the prime rate an individual pays?

Previous credit behavior Signup and view all the answers

What is the formula to calculate the monthly periodic rate?

Monthly percentage rate = APR ÷ 12 Signup and view all the answers

What is the characteristic of a fixed APR?

It remains the same for the life of the loan Signup and view all the answers

What is the primary purpose of the house being used as collateral in a mortgage?

To guarantee repayment of the loan Signup and view all the answers

What is the purpose of the provision for release of parties in a mortgage deed?

To specify the terms for releasing the mortgage Signup and view all the answers

What is a key benefit of using a mortgage to purchase a home?

It makes home buying more affordable Signup and view all the answers

What is the purpose of the registration of mortgages?

To provide a public record of the mortgage Signup and view all the answers

What is the consequence of defaulting on a mortgage?

The lender has the right to take back the property Signup and view all the answers