Budget Flashcard

Front

The best description of a budget is which of the following? A financial tool for consumers who have very little money. A plan for savings and spending your money. A set of restrictions on how to get a boat and jet ski before your neighbors A statement of your assets and liabilities.

Back

A plan for savings and spending your money.

Front

Which of the following are the two largest categories for US consumer spending?
Options: Food and clothing, Food and personal insurance, Health care and utilities, Housing and transportation

Back

Housing and transportation

Front

What percentage of Americans living paycheck to paycheck?

Back

70%

Front

The zero-budget is the best method of budgeting because:

Back

The zero-based budget ensures that every dollar you make is assigned a specific purpose.

Front

When it comes to managing money, success is about ________ % knowledge and ___________% behavior.

Back

20% knowledge and 80% behavior.

Front

Which of the following is not one of three basic reasons for saving money? Emergency fund, Large purchases, Build wealth

Back

Have money available to lend to friends

Front

Why is having a fully funded emergency fund so important when it comes to your financial well-being?

Back

The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.

Front

In which category should you have to make the most cuts in the budget? Options: Savings, Variable/Flexible Expenses, Fixed Expenses, Emergency Fund

Back

Variable/Flexible Expenses

Front

In order to control his budget, Josh should cut spending in which of the following categories? Food/Entertainment, Rent/Mortgage, Savings/Emergency Fund, Car/Insurance

Back

Food/Entertainment

Front

Which of the following costs is; Rent? Fixed Cost, Variable/ Flexible Cost, Discretionary Cost

Back

Fixed Cost