CM Un9wk3 - Budgeting Basics

By Chip Krolik

Budgeting Basics

Multiple Choice

What is a budget?

• A tool used to calculate taxes.

• A tool used to plan for building a house.

• A tool used to track and plan for income and spending (expenses).

• A tool used for calculating how much savings interest can be earned

Multiple Choice

A budget helps you save money for the things you really want.

• True

• False

Multiple Choice

How can creating a budget help you?

• It can help me to stay focused on my financial goals.

• It will allow me to spend more money than is necessary.

• It will help me in calculating my taxes.

• It will allow me to stay physically healthy.

Multiple Select

Below is a list of Jackie's financial activities for a week.

What activities would be considered income for Jackie? Check all of the ones that are considered income.

• She contributes $5 to a class party.

• She earns $25 for helping a neighbor do some gardening.

• She spends $20 on movie tickets and snacks

• Her parents give her an allowance of $25 for the week.

• She spends $10 on a new t-shirt.

Multiple Choice

Jackie usually earns $60 a week, but usually spends $30 a week. How much can Jackie save in a month (4 weeks)?

• $30

• $60

• $90

• $120

Multiple Select

Below is a list of Jackie's financial activities for a week.

What activities would be considered expenses for Jackie? Check all of the ones that are expenses.

• She earns $25 for pet-sitting.

• She spends $10 on pizza.

• She gives a friend a $20 gift card for their birthday.

• Her parents give her $30 for doing extra chores around the house.

• She spends $10 on a new t-shirt.

Multiple Select

Jackie realizes it will take her 5 months to save for her new phone. She wants to purchase it within at least 3 months. What are the ways she can adjust her budget to purchase it sooner? Check all that apply.

• She can decrease her expenses.

• She can increase her expenses.

• She can increase her income.

• She can decrease her income.

Multiple Choice

Which of the following is an example of a need for most people?

• A place to live
• A nice car
• Designer jeans

Multiple Choice

The circle graph shows Haley’s monthly budget. What percent of her budget is for housing?

• 18%
• 28%
• 13%
• 8%

Multiple Choice

This month Mando’s expenses are greater than his income. What are two actions Mando can take in order to balance his budget?

• Increase expenses and decrease income

• Decrease expenses and decrease income

• Decrease expenses and increase income

• Increase expenses and increase income

Multiple Choice

Jane takes home $3,500 every month from her job. She uses $1,800 of that money to pay for her rent and her car payment, $300 for her credit card payment and $100 for her savings account. In order to make sure that she keeps her budget balanced for her month, what is the most amount of money that she can spend for the rest of the month?

• $1,100

• $1,300

• $800

• $1,200

Multiple Choice

As part of his budget, a business owner puts aside $3,000 every week for employee salaries. He currently has 10 employees and pays them each $400 per week. What does he need to do to help keep the salaries he pays each week at a total of $3,000?

• He needs to increase the total amount of money he pays each employee by $100 per week.

• He needs to increase the total amount of money he pays each employee by $50 per week.

• He needs to decrease the total amount of money he pays each employee by $50 per week.

• He needs to decrease the total amount of money he pays each employee by $100 per week.

Multiple Choice

Leon listed some expenses from last month on this table. Which of the following is a fixed expense?

• Gifts for friends

• Sodas

• Car payment

• Sports tickets

Multiple Choice

Arturo earned $100 last month from his afternoon babysitting job. The table shows Arturo’s budget. Which is a true statement about Arturo’s budget?

• Arturo’s budget is not balanced because his expenses exceed his income.

• Arturo will have a surplus because he plans to spend less than he earned.

• Arturo’s budget is not balanced because he will spend all of his money.

• Arturo’s budget is balanced because his expenses equal his income.

Multiple Choice

Rex deposits a $255 check from his weekend job as a clown. Rex plans a balanced budget for his earnings. He expects to spend $55 for the dentist and $120 for gasoline and other automobile expenses. He plans to have his clown shoes repaired for $15. He will donate $20 to the Needy Children Fund. Rex plans to spend some of his earnings for movies. Which statement is true if Rex spends $35 for movies?

• His expenses equal his earnings.

• He cannot afford to have his shoes repaired

• He has money left in his bank account.

• He must pay fees for being overdrawn at the bank.

Multiple Choice

Rex deposits a $255 check from his weekend job as a clown. Rex plans a balanced budget for his earnings. He expects to spend $55 for the dentist and $120 for gasoline and other automobile expenses. He plans to have his clown shoes repaired for $15. He will donate $20 to the Needy Children Fund. Rex plans to spend some of his earnings for movies.

When Rex visits the dentist, he learns that he has a cavity. The cost to have the cavity filled is $32. Which of the following adjustments will BEST help Rex pay for the filling without going over budget?

• Do not have the shoes repaired.

• Do not donate to the Needy Children Fund.

• Do not buy gasoline.

• Spend less for movies.

Multiple Choice

Tina earned $15 doing laundry and $9 washing the car last month. She created a balanced budget for her earnings. Which table could show Tina’s budget?

Multiple Choice

If you have a monthly income of $3,000 and you follow the 50/30/20 budgeting rule, how much money should you save?

• $600

• $900

• $1,500

• $1,200

Multiple Choice

The Lopez family has a net monthly income of $5,000.

How much money does the Lopez family spend on food each month?

• $525

• $600

• $550

• $300

Multiple Choice

If a budget allows 20% for car costs, how much is allocated from a weekly wage of $600?

• $480

• $120

• $240

• $100

Multiple Choice

A laptop is sold for $1200 after a 20% markup. What is the original price of the laptop?

• $1000

• $960

• $1100

• $1050

Multiple Choice

A car was bought for $20000. After a year, its value depreciated by 15%. What is the value of the car after a year?

• $17000

• $18000

• $19000

• $16000

Poll

After this lesson, I feel --- budgeting (and percentages)

• very confident about both topics:

• good about both topics:

• good about one, but not the other

• lost...I don't know what either of these topics are

• other: my thoughts/feelings are not listed here