Making a Budget

Which two things does a budget compare?

• Savings and interest

• Income and expenses

• Income and investments

• Expenses and expenditures

Which of the following is a true statement about budgets?

• They encourage people to spend as much money as possible

• Setting up a budget will allow you to earn more money

• The idea behind keeping a budget is to spend exactly as much as you earn

• They allow people to track how and where their money is spent

In what way is a kid's budget similar to an adult's budget?

• The goal for both is to have less money going out than coming in

• Both have about the same ratio of income and expenses

• People can save money with both by earning less than you spend

• Both adults and kids tend to spend their money on the same items

If your income is $20 per month, how much should you spend each month to stay on budget? Choose the best answer.

• Exactly $20

• Between $10 and $30

• Nothing

• $20 or less

The key to keeping a budget is to spend your money prudently. What is the best synonym for "prudently?"

• Stingily

• Wisely

• Extravagantly

• Thoughtlessly

If you were in charge of buying milk for a family of five, but not everyone has breakfast at home every day, what kind of expense would the milk be?

• Fixed essential

• Variable essential

• Non-essential

• Non-variable

What can you infer from Tim's practice of saving receipts?

• Knowing how much you spend helps you keep an accurate budget

• The more receipts you collect, the more money you're likely to save c

• You can't know how much you spend unless you save receipts

• Saving receipts is a fun hobby, but not useful when keeping a budget

People in debt are often said to have a budget deficit. What does that mean?

• They never set up a budget, which directly led to their debt

• They only set up one budget for the year, when they should have set up more than one

• Their expenditures exceeded their income

• They had no income

What is one consequence of going into bankruptcy?

• Losing the ability to make a budget

• Losing your job

• Having some of your possessions taken away

• Going to prison