Assess students' ability to apply basic budgeting skills by constructing a simple monthly budget from a given income and a list of fixed and variable expenses. Students should calculate total income and expenses, categorize expenses (fixed vs. variable), allocate a savings target (e.g., 10–20%), determine whether the budget balances, and suggest realistic adjustments to cover deficits or increase savings. Focus on accurate arithmetic, clear categorization, and practical decision-making.