Which statement best defines budgeting, saving, and credit, with a simple example?

• A. Budgeting is unnecessary; saving is optional; credit is free money
• B. Budgeting plans income and expenses; saving sets aside money; credit involves borrowing with interest. Example: save R50 weekly for a bike, and borrow R200 with repayment plan
• C. Budgeting is about debt; saving is spending; credit is a gift
• D. Budgeting is about investments only; saving is about debt; credit is about earned interest

Answer: (B)