Unit 3 - Budgeting Review

Which of the following is a consequence of overdrawing your checking account?

• Bounced check fee from the store.
• Stress from money mismanagement
• Overdraft fee from your bank
• All of the above

Doing a budget does not:

• Show if you are overspending in an area
• Make overspending more likely
• Remove guilt and shame sometimes associated with a purchase
• Make your money go further

Your monthly budget should include:

• Variable expenses
• Discretionary expenses
• Fixed expenses
• All of the above

Which of the following statements is false?

• A cash flow statement summarizes all of the income and outgo (spending) over a certain time period.
• A budget is a written plan for saving and spending.
• A budget is meant to summarize the saving and spending that has taken place over the past year.
• The cash flow statement is reflective of what has already taken place.

Which of the following is something that a typical millionaire would do?

• Lease a new car
• Spend less money than he or she makes
• Replace things that are not broken
• Carry debt

Rent is a:

• Fixed expense
• Variable expense
• Discretionary expense
• Intermittent expense

Eating out is a:

• Fixed expense
• Variable expense
• Discretionary expense
• Intermittent expense

Car repairs are a:

• Fixed expense
• Variable expense
• Discretionary expense
• Intermittent expense

Groceries are a:

• Fixed expense
• Variable expense
• Discretionary expense
• Intermittent expense

A written budget, if followed, removes _______ from your finances.

• Overspending
• Guilt
• Management by crisis
• All of the above