Financial Literacy Budgeting and Spending

Written Budgets allow us control over money coming in to our Household and:

• What you need to do with your money

• What you should do with your money

• Bills you must pay

• Bills you have paid

• All of the above

What best meets the definition of an Insurance Co-Payment

• The amount that the insured person receives before the health insurer pays for a particular visit or service

• The amount that the insured person must pay out of pocket before the health insurer pays for a particular visit or service

• The amount that is paid by the Government to ensure you receive free Medicare

• The amount that is paid by your Employer who offers you Medical Plan Employment Benefits

A Budget that is not written down:

• Allows the person some flexibility in deciding from month to month which items they will pay

• Is encouraged because the written budget is only a recommendation

• Allows for extra expenses not anticipated from month to month

• Makes it extremely difficult to become financially successful

Which is not true regarding Automobile Insurance

• Automobile Insurance is required in all states

• People are compelled to at least maintain ‘Minimum Coverage.’

• Minimum coverage shields a person from liability for damage in excess of the ‘Minimum’ amount of insurance acquired.

• Minimum Coverage is usually determined to be $100,000 in Liability.

Which is not an essential element of building a realistic Budget

• Begin your list with variable expenses such as groceries, entertainment, internet & cable expenses

• Gather your bills and write down all expenses

• Pay yourself first $0.10 of each dollar you make and invest for your future beginning at age 18

• Start your process reviewing savings/investments, mortgage/rent, or fixed car payments, Insurance.

Which is not a good idea when tracking your expenditures before writing down a budget

• Track your expenditures for a few weeks or a month

• Round up to nearest dollar

• Write down every cent spent

• End your list with variable expenses such as groceries, gasoline, entertainment, etc.

Is Car Insurance monthly premium a firm or variable expense

• Firm monthly expense

• Variable monthly expense

Are Groceries a firm monthly expense or variable monthly expense?

• variable monthly expense

• firm monthly expense

Is Rent Due for Apartment a firm monthly expense or variable monthly expense

• firm monthly expense

• variable monthly expense

Which is true about Meghan Trainor

• She has a mega cute dog named Biggie

• She is a huge Bruno Mars fan

• She used to have blue eyes but now they are green

• All of the above