Virtual Business: Personal Finance Reading Quiz Lessons 3

Which is NOT a money management skill discussed in the reading material

• Estimating expenses

• Managing your time in a healthy manner

• Formulating a budget

• Saving for emergencies

What are some typical expenses for a person just starting out in a rental apartment?

• Interest income, tax refunds

• Take-home pay, mortgage insurance

• Rent, renters insurance, transportation cost

• All of these

Which of the following is an example of irregular income?

• A full-time job

• A part-time job

• A graduation gift

• Both b and c

Why is it harder to estimate expenses than to estimate income?

• Expenses often change more from month to month

• You can never truly know how much you spend

• Your income will never change

• None of these

A budget can help you reach a financial goal by

• Showing you how you can earn more income

• Allowing you to see where you can cut back on spending

• Giving you the tools to change more fixed expenses to flexible expenses

• All of these

Preparing a budget is:

• An ongoing process

• Something you only have to do once in your lifetime

• Not an effective way to save money

• A method for calculating take-home pay

Money in your emergency fund could be wisely used:

• To buy a new pair of shoes that went on sale

• To put money down on a new car

• To pay for an unforeseen health expense

• To lend money to a friend to pay off credit card debt

Which is NOT something you should look for in a saving account?

• Low (or no) monthly fee

• Rewards for using you debit card

• Free online banking

• Competitive interest rate

When estimating income, it is better to be:

• A little low

• A little high

• Count on getting plenty of overtime

• None of these

How much money should you save each month?

• Always save 5% of your income

• You must decide what you can afford

• Save $50 from every paycheck

• Only save your spare change