Budgeting Quiz

Total income before taxes is referred to as

• Gross income

• Disposable Income

• Estimated Income

• Variable Income

• Net Income

The money you have left to spend or save after taxes and other deductions are taken

• Gross income

• Disposable income

• estimated income

• variable expense

A budget is a spending and savings plan based on your

• investments

• job position

• education and experience

• expected income and expenses

Fixed expenses are likely to fluctuate each month

• True

• False

Variable expenses are costs that vary in amount and type, depending on the choices you make.

• True

• False

The cost of rent usually stays the same each month. This makes it a

• fixed expense

• variable expense

• neither of these is correct

If the amount you spend on groceries is different each month, the cost of groceries would be considered a

• fixed expense

• variable expense

• neither of these is correct

Fixed expenses are usually more difficult to change than variable expenses

• True

• False

Experts agree that having fixed expenses that total between 75% and 80% of take-home pay is generally acceptable.

• True

• False

Variable expenses are easier to change than fixed expenses.

• True

• False