Money and Budgeting 1

Front

How do wages and salary differ?

Back

Salary describes what you earn on an annual basis.

Front

Which of the following are TRUE about gross income and net income? They are the same thing, Gross income is the total amount earned AFTER deductions, Gross income is the total amount earned BEFORE deductions, Net income is the total amount earned BEFORE deductions

Back

Gross income is the total amount earned BEFORE deductions

Front

Which of the following may NOT always appear on your paycheck stub? Gross Pay, Net Pay, Your Role/Title, Local Tax

Back

Your Role/Title

Front

In "pay yourself first" budgeting, what's typically the first action after getting paid?

Back

Transfer money to your savings account

Front

What is a "fixed expense" in a budget?

Back

An expense that stays the same each month

Front

Which budgeting approach is most likely to help someone who tends to overspend on impulse purchases? Options: Tracking expenses after each purchase, Using only cash for non-essential spending, Automating all bill payments, Reviewing expenses at the end of each month

Back

Using only cash for non-essential spending

Front

How does the 50/30/20 rule of thumb for budgeting allocate your income?

Back

50% Needs, 30% Wants, 20% Savings & Debt Repayment

Front

Which of the following is an example of buying something you NEED? Options: "I want to replace something that is no longer working." , "I want to impress someone/ change how they feel about me." , "I'm feeling down, and I need to boost my spirits." , "I don't want to miss out on these deals during the sale!"

Back

I want to replace something that is no longer working.

Front

Which of the following is considered a variable expense in a monthly budget?
Student loan payment,
Electricity bill,
Rent payment,
Car insurance premium

Back

Electricity bill

Front

What is the main purpose of creating a personal budget?

Back

To ensure your expenses do not exceed your income