Budgeting Pretest

The only needs you have are food, water, air, and shelter

• True

• False

Select the answer that is the most correct.

Setting financial goals are important because...

• they will make you financially wealthy.

• they will make you more mature.

• they help you take the right steps when designing a budget.

• they help you manage your assets and liabilities.

The acronym, SMART, stands for...

• Specific, Measurable, Attainable, Reliable, and Time-bound

• Sales, Marketing, Accounting, Real-estate, and Target Income

• Safe, Manageable, Acute, Relatable, Tangible

• Spending, Money, At, Right, Times

Why should you track your spending habits?

• Understand how you are making your money.

• Understand where your money is going.

• Understand the difference between needs and wants.

• Understand how supply impacts demand.

Net income is?

• The amount of money you receive after payroll deductions

• The amount of money you receive before payroll deductions

• The money you have leftover after all expenses are payed

• The money you have leftover at the end of the year

A budget is?

• A statement of what you own and what you owe

• Only practical for families with many expenses

• Only for people with full time jobs

• A plan for spending and saving based on income and expenses

The two deductions automatically deducted from your paycheck regardless of claiming status are?

• Federal and State

• Social Security and Medicare

• Public and Private

• Property and Federal

Gross Income is?

• The amount of money you receive after payroll deductions

• The amount of money you receive before payroll deductions

• The money you have leftover after all expenses are payed

• Money that is unwanted.

Discretionary Income is?

• The amount of money you receive after payroll deductions

• The amount of money you receive before payroll deductions

• The money you have leftover after all expenses are payed

• The money you obtained privately

When starting a new job an employer will have you complete a...

• W2

• 1099

• W4

• W9