Chapter 3 Budgeting

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

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

Doing a budget does not: 

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

Your monthly budget should include: 

• Discretionary expenses 
• Fixed expenses
• Variable expenses 
• All of these 

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

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

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

• Guilt 
• Management by crisis
• Overspending 
• All of these 

The zero-based budget is the best method of budgeting because: 

• This type of budget is less complicated than other types of budgets
• Sticking to a zero-based budget requires less discipline
• A zero-based budget allows less money for wants
• The zero-based budget ensures that every dollar you make is assigned a specific purpose

Rent is a: 

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

Eating out is a: 

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

Groceries  are a: 

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

Having more than one bank account is never a good idea since it can complicate money management.

• True

• False