Monthly Budgeting Quiz

What's the most important part of managing your money?

• Saving money.

• Setting aside money for entertainment.

• Making sure your needs are covered.

• Not spending any of it.

The first step to creating a budget starts with:

• Checking your paycheck to see how much is taken in taxes and withholdings.

• Determine what all of your monthly expenses are and then add them all up to get your total monthly expenses.

• Inquiring about how much you currently have in savings.

• Counting all of the cash you have on hand.

What are two ways you can ensure that you pay your bills on time?

• Pay them ahead 3 months. Call your creditors.

• Set reminders on your phone or computer.

• Ask someone to remind you like your parents or a friend. Set a reminder on your phone.

• Set calendar reminders for due dates. Set up automatic payments.

How do you avoid paying interest on automatic bill payments if you are making these payments using your credit card?

• Just don't pay your credit card bill.

• Pay the amount of the bill payment and don't pay the interest.

• Pay your credit card bill in full each month.

• Don't have a credit card.

Make saving a priority by thinking of saving as:

• Necessary to build substantial wealth.

• An automatic payment to YOURSELF. Pay yourself first.

• An emergency fund if I run out of money for wants.

• Extra money to spend.

If you find yourself overspending every month, what's one way you can fix this problem?

• Stop spending money altogether.

• Borrow money from family.

• Get a second job.

• The Envelope Method: Save money in envelopes for each type of expense you have.

What are the basics of managing your spending?

• Make sure your needs are covered.

• Manage your debts and savings.

• Avoid overspending.

• Borrow money from people whenever possible.

What is the first step in creating a budget?

• Open a Google spreadsheet.

• Note your income.

• Put money away in savings.

• Find a good money management app.

What is the difference between a fixed expense and a variable expense?

• Fixed expenses are regular monthly bills such as rent, car payment, etc. Variable expenses change from month to month such as gas, groceries, or entertainment.

• Fixed expenses are what you spending on fixing things in your house or car. Variable expenses are your regular bills.

• Fixed expenses and variable expenses are basically the same thing.

• Fixed expenses are more expensive than variable expenses.

Why is it important to make a plan when budgeting?

• So you can have more money for wants.

• So you can show people how organized you are.

• So you can make adjustments to your budget later if it becomes necessary.

• So you can decide if you need to work more hours.