Budgeting Unit Finance

When developing a budget, it is a good idea to “pay yourself first,” by saving a percentage of your paycheck before deciding how much money you have left to spend.

• True

• False

Which of the following are likely items most people see on their paycheck stub:

• Gross pay

• Mortgage deduction

• Net pay

• Medicare

• Renter's Insurance

When putting together your personal budget, you find that your budget has a DEFICIT. Indicate the action that you need to take to balance your budget.

• Increase your income and expenses by the same amount

• Cut your expenses by an amount greater than your deficit

• Increase your expenses by more than your deficit

• Increase spending on your needs

Caitlin works at the local store. She works from 3pm - 7pm on Monday and Wednesday and each Saturday morning from 9am - 1pm. She gets paid $10 per hour. What will be Caitlin's weekly net (or take home) pay?

• Exactly $120

• More than $120

• Less than $120

____1____ refers to the amount prior to tax withholdings and deductions.

________ refers to the “take-home” amount after taxes have been withheld.

Jesse just bought a used Honda Civic and anticipates driving 10,000 miles per year. The car gets 25 miles per gallon and assume that the gas costs $3.00 per gallon. How much should Jesse budget for his annual gasoline cost?

• $3.00

• $400

• $1200

• $750

Pharmacy 1 is selling one pack of toilet paper with 10 rolls for $10. Pharmacy 2 is selling one pack of toilet paper with 48 rolls for $24. Which statement below is TRUE?

• Pharmacy 1 has a lower unit price

• Pharmacy 2's unit price is $2.00 per roll

• Pharmacy 1 has a unit price of $.10 per roll

• Pharmacy 2 has the lowest unit price of $0.50 per roll

Which of the following is NOT an effective budgeting strategy for saving money at the grocery store?

• Always buy the item that's on sale

• Stock up on basic pantry items that you can use to cook a lot of different meals

• Prepare a grocery list before you go to the store, and avoid buying items that aren't on the list

• Build a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat

50 percent of your budget should go toward

• necessary items

• wants/fun things

• savings