Unit 4 Budgeting Test Review

Front

What is the best approach to budgeting for variable expenses?

Back

Track your variable expenses for a few months to find your average monthly costs.

Front

What is the result of the formula =C4*D4 if C4 is $125.01 and D4 is 4?

Back

$500.02

Front

How are fixed expenses characterized in a budget?

Back

They are often hard to change and they usually make a large impact on your budget.

Front

What is an ineffective way to balance a budget when expenses exceed income?

Back

Borrowing money from your friends every month to make up the difference.

Front

Using the 50/30/20 budgeting method, how much of a $6000 monthly income is allocated to wants?

Back

$1800.

Front

Define variable expenses in budgeting.

Back

Expenses that can change from month to month, such as entertainment and dining out.

Front

What are fixed expenses?

Back

Regular, recurring expenses that are typically the same amount each month, like rent or mortgage.

Front

What is the 50/30/20 budgeting rule?

Back

A budgeting method that allocates 50% of income to needs, 30% to wants, and 20% to savings.

Front

Why is it important to track variable expenses?

Back

To understand spending habits and identify areas for potential savings.

Front

What is an example of a fixed expense?

Back

Monthly rent or mortgage payment.