Budgeting and Spending

Front

Which of the following elements is NOT part of the 50/30/20 Rule? Wants, Needs, Car payments, Savings

Back

Car payments

Front

What is the purpose of creating a budget?

Back

To track income and expenses

Front

Which of the following is NOT a step in the Rational Decision-Making Process mentioned in the text? Define the problem or opportunity, Identify alternatives, Determine financial needs, Choose the best alternative

Back

Determine financial needs

Front

How often should you update the document tracking your sources of income? Options: Annually, Quarterly, Monthly, Biweekly

Back

Monthly

Front

What equation represents the relationship between savings, income, and expenses?

Back

Savings = Income - Expenses

Front

Which of the following is an example of a fixed expense? Entertainment, Car repairs, Auto insurance, Dining out

Back

Auto insurance

Front

What is discretionary income?

Back

What a household or person has left after essentials have been paid, to invest, save, or spend

Front

How should you categorize your budget for prioritization? Options: Alphabetically, By size, By priority, Randomly

Back

By priority

Front

Which of the following is NOT a step in managing your budget effectively?
Checking it monthly, Writing down all your expenses, Ignoring technology, Categorizing expenses

Back

Ignoring technology

Front

What factor should you consider before deciding on transportation?

Back

Your location