Money Matters: Ch. 3 (Budgeting)

Which of the following is the term(s) used for a written cash flow plan?

• Income statement

• balance sheet

• budget

• ledger

People avoid budgets because they believe it constricts them.

• True

• False

When should you open your first checking account?

• between 5-8 years old

• between 13-15 years old

• between 18-21 years old

• None of the above

A(n) ___________ is when you spend more money than you have in your account.

• overdraft

• endorsement

• overage

• reserve

What is the average fee that a bank charges for an overdraft?

• $10

• $35

• $25

• $20

It is recommended that you get overdraft protection in case you accidentally spend more money than you have.

• True

• False

What type of budget does Dave discuss in which every dollar is assigned a specific purpose before the month begins?

• flat rate budget

• efficiency budget

• reconciliation budget

• zero based budget

Dave recommends putting cash in a(n) __________ for managing spending on things that don't normally have a fixed monthly expense.

• vault

• secret hiding spot

• IRA

• envelope

A cash flow statement is a summary that shows the total _______ and spending for a given period of time.

• assets

• liabilities

• revenue

• income

What is the definition for reconcile?

• To invest

• To be in debt

• To match your bank statement with your checkbook

• None of the above