Personal Finance- Ch 3 Review

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

• Bounced check fee from store

• Overdraft fee from bank

• Stress from money mismanagement

• All of the above

Doing a budget does not...

• Show you are overspending in an area

• Make overspending more likely

• Remove quilt and shame from spending

• Make your money go further

Your monthly budget should include...

• variable expenses

• fixed expenses

• discretionary expenses

• All of the above

Which of the following statements is false?

• A cash flow statement summarizes all of the income and 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 a typical millionaire would do?

• Lease a new car

• Replace things that are not broken

• Spend less than s/he makes

• carry debt

Rent is a...

• Fixed Expense

• Variable Expense

• Discretionary Expense

• Intermittent Expense

Car Repairs are 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

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

• overspending

• guilt

• management by crisis

• all of the above