Budgets Ch. 8

How much do most financial experts agree that you should put into savings each pay period?

• 10-20%
• Less than 5%
• 25-30%
• What you can afford

What is the term for the money you have leftover after all of your taxes have been deducted? 

• gross pay
• disposable income
• discretionary income
• variable expenses

How much money does Dave Ramsay suggest that you should have in an emergency savings plan?

• 3-6 months salary
• $12,000
• $1,000
• Whatever you can afford

The mortgage payment and the car payment are examples of which of the following?

• variable expenses
• assets
• zero-based budgeting
• fixed expenses

Which of the following is an example of a variable expense?

• car payment
• gas for your car
• student loan for college
• insurance

What is the discretionary income?Income $4,000; Taxes $1,000, Savings $400, Expenses, $2,500

• $100
• $3,000
• $4,400
• $1,500

What is the net worth of the person with the following information: Value of car $5,000, Credit card bills $2,000, Savings Acct $500, Balance of Car loan $1,000

• $5,500
• $2,500
• $7,000
• $8,500

What does the 50 mean in the rule of thumb: 50/20/30

• 50% of income for fixed expenses
• 50 years to retirement
• 50% of income for savings
• 50 years for mortgage terms

What does the 10 mean in 20/4/10 rule of thumb?

• Drive for 10 years
• 10% down payment
• 10% of take-home pay

• Buy car 10 years old

What is the rule about student loans?

• have parents put off retirement savings
• put 20% down
• pay off in 30 years
• don't borrow more than you'll make in 1st year of job