Budgeting Flocabulary

All of the following may be considered needs except

• bus fare

• groceries

• movie ticket

• rent

What is opportunity cost?

• the tax that is paid on income

• the fees that are paid for education

• the value of an alternative you give up

• the interest paid on a long-term investment

Rent and car insurance payments are both which type of expenses?

• fixed costs that are needs

• fixed costs that are wants

• variable costs that are needs

• variable costs that are wants

A consumer is someone who

• buys something

• makes something

• offers a service

work and money given to you is considered a....

• Cash flow

• Fixed costs

• Income

• Savings

Which statement about variable expenses is true?

• Variable expenses include only large costly items.

• Variable expenses should not be included in the budget.

• Variable expenses include wants but not needs.

• Variable expenses are easier to cut than fixed expenses.

What is the main purpose of a budget?

• to keep track of cash flow

• to find new sources of income

• to differentiate between needs and wants

• to determine the amount of taxes to be paid

Charlie has job earnings of $960.00 and extra income of $48.00. His monthly expenses are $880.00. How much money can he put aside for a whole bunch of crickets?

• $32.00

• $48.00

• $112.00

• $128.00

Oscar's budget shows a problem. His weekly expenses average $10 more than his earnings. Oscar works 5 days a week and every day on his way to work, he spends $2.50 on hot chocolate. Will cutting out the hot chocolate help Ellis balance his budget?

• Yes, and he will have some money left over.

• Yes, the amount he saves will balance his budget exactly.

• No, Oscr will have to find other places to cut.

Pebbles wants to buy a new dishwasher that costs $500. She has already saved $100. She earns $1,200 a month and her total monthly expenses come to $1,000. Pebbles is going to put all of her extra money each month into her savings account for the dishwasher. Assuming her expenses stay the same, how long will it take Pebbles to save enough money for the dishwasher?

• three months

• two months

• five months

• one month