Question

what is the primary purpose of creating a budget in personal finance?
a. to limit your income
b. to manage daily transportation only
c. to track and control spending
d. to track your academic performance

Explanation:

A budget in personal finance is mainly used to plan and monitor income and expenses. Option a is wrong as a budget doesn't limit income. Option b is too narrow as it's not just for transportation. Option d is irrelevant as it's about academic performance. Option c is correct as tracking and controlling spending is a key purpose of a budget.

Answer:

C. To track and control spending