Understanding how to manage money wisely is a crucial life skill. Chapter “Making a Budget” from the Class 9 NCERT Economics textbook introduces students to the basics of budgeting, helping them grasp how individuals and families allocate income to meet their needs and wants.
Making a Budget Class 9 NCERT Solutions
I. Choose the Correct Answer.
Q. A household budget is a __ plan.
a) Personal
b) Family
c) Financial
Q. Budgeting helps you to prevent reckless __.
a) Spending
b) Income
c) Saving
Q. Making budget a __ affair
a) Personal
b) Participative
c) Non-Participative
Q. __ is an expense where we can have better control.
a) Non-Discretionary
b) Saving
c) Discretionary
Q. By creating a , you can decide on how you will use your money.
a) Budget
b) Chart
c) Diagram
II. Fill in the Blanks.
Q. One of the critical activities to achieve the financial goal is to make __ for your expenses.
Q. A __ budget is your financial plan in which you allocate the family income towards various expenses and savings.
Show Answer ⟶Q. __ is the key element which enables you to fulfil your financial goals.
Show Answer ⟶Q. To improve our budget control, we must do __ every month.
Show Answer ⟶Q. Creating a budget will help you plan and balance between money and money .
Show Answer ⟶III. Match the following.
- Household Budget – Income/Expenditure Statement for 2 Months
- Family Budget – Expense that cannot be controlled
- No deficit – Review every month
- Non-Discretionary – Exercise control over money
- Budget Control – Expenses within our income
Correct Match
- Household Budget – Income/Expenditure Statement for 2 Months
- Family Budget – Expense within our income
- No deficit – Exercise control over money
- Non-Discretionary – Expense that cannot be controlled
- Budget Control – Review every month
IV. True or False.
Q. A budget enables you to become aware of how money comes in and where it is spent.
Show Answer ⟶Q. By creating a budget, you can decide on how you will use your money.
Show Answer ⟶Q. Discretionary expense is an expense where we cannot have better control.
Show Answer ⟶Q. It is not advisable to involve all members of the family at the time of preparation of the budget.
Show Answer ⟶Q. Savings is any money left after your expenditure.
Show Answer ⟶V. Answer the following in one word or in a sentence.
Q. What is a Budget?
Answer: A budget is a plan which you write down to decide how you will spend your money each month. A budget enables you to track how you propose to allocate the money that you have. It helps you manage your limited financial resources more efficiently so that you can achieve your goals.
Q. What is Household Budgeting?
Answer: A household budget is a financial plan in which you allocate the family earnings towards various expenses and savings. The expenses include repayment of a loan, children’s education, purchase of essential commodities like milk, vegetables, fruits, medical & electricity bills, etc. The household budget offers many advantages as follows:-
- With household budgeting, you can exercise control over money.
- Budgeting helps you to prevent reckless spending.
- Above all, it helps you to have peace of mind without financial worries.
Q. Give examples for discretionary & non-discretionary expenses?
Answer: Discretionary expenses are the things you choose to spend money on but don’t really need. These include going out to eat, watching movies, and taking vacations. Non-discretionary expenses are things you must pay for to live your daily life. These include rent or home loan payments, school fees, electricity and water bills and medical costs.
Q. What is savings?
Answer: Savings means keeping some money aside instead of spending it all. When you earn money, like from a job or business, you spend some for things like food, rent, bills, or whatever is left from this spending that you can save.
Q. What is budget review? When is it required?
Answer: A budget review helps to understand about income, expenses and savings to see how well a financial plan is working. The budget review is usually required:
- Every month to track spending
- When your income changes
- If your expenses increase
- Before a big decision
- During financial stress
VI. Answer the following briefly.
Q. Differentiate between discretionary & non-discretionary expenses.
Answer: Analyse and focus on expenses which went beyond our control and where we have exceeded our budget. These expenses need to be further classified into discretionary and non-discretionary expenses. Discretionary expense is an expense where we can have better control, and non-discretionary is an expense which cannot be controlled by us.
Q. What is a personal budget? In your opinion, how can one adhere to his budget?
Answer: A personal budget is a simple method to plan how to manage your money. It tracks how much money you earn, how much you spend and how much you save. By creating a budget, make sure that you are not spending more than you earn and make future goals like buying a home, going on a trip or handling emergencies, etc.
Some tricks to adhere to the budget are:
- Track your spending.
- Set clear goals.
- Avoid unwanted buys.
- Review regularly.
Q. Define: a) Savings, b) Income, c) Expenditure
- Savings: Savings means keeping some money aside instead of spending it all.
- Income: Income is the money you earn from a job, business or rent.
- Expenditure: The money you spend is known as expenditure.
Q. What are the advantages of a household budget?
Answer: The advantages of a household budget are:
- Tracks income and expenses
- Prevents overspending
- Identifies wasteful habits
- Prepares for unexpected expenses
- Support long-term planning.
- Keeps you focused
- Minimises financial anxiety
VII. Answer in detail.
Q. What are the Tips for Preparing a Household Budget?
Answer: Tips for preparing a household budget are:
- Know your income.
- Track your expenses.
- Set clear goals.
- Prioritise needs over wants.
- Plan for savings
- Prepare for Emergencies
- Review and adjust regularly.
Q. Being a good money manager will help you achieve your goals on time. Explain.
Answer: Being a smart money manager means:
- You stay in control.
- You avoid debt traps.
- You reach milestones faster.
- You reduce stress.
Disclaimer: We have taken an effort to provide you with the accurate handout of “Making a Budget Class 9 NCERT Solutions“. If you feel that there is any error or mistake, please contact me at anuraganand2017@gmail.com. The above CBSE study material present on our websites is for education purpose, not our copyrights.
All the above content and Screenshot are taken from Introduction to Financial Markets Class 9 NCERT Textbook, CBSE Sample Paper, CBSE Old Sample Paper, CBSE Board Paper and CBSE Support Material which is present in CBSEACADEMIC website, NCERT websiteThis Textbook and Support Material are legally copyright by Central Board of Secondary Education. We are only providing a medium and helping the students to improve the performances in the examination.
Images and content shown above are the property of individual organizations and are used here for reference purposes only. For more information, refer to the official CBSE textbooks available at cbseacademic.nic.in