Budget and Savings quiz

Which is NOT something you should look for in a savings account?

• Low (or no) monthly fee

• Rewards for using your debit card

• Free online banking

• Competitive interest rate

Why is it better to underestimate your income instead of overestimating when creating a budget?

• Some expenses fluctuate from month to month

• Overestimating may lead to a deficit

• Regular deficits can lead to increasing debt

• All of the above

How much money should you save each month?

• You must decide what you can afford

• Always save 5% of your income

• Save $50 from every paycheck

• Only save your spare change

Which is NOT a money management skill discussed in the reading material?

• Estimating expenses

• Formulating a budget

• Saving for emergencies

• Managing your time in a healthy manner

Which of the following is an example of irregular income?

• A full-time job

• A part-time job

• Both a and b

• A graduation gift

Flexible expenses refer to

• Expenses that are always unexpected

• Expenses that never change

• Expenses that can change

• None of the above

True or False: You should calculate your regular monthly pay based on your Gross Pay.

• True

• False

In looking at the sample budget plan in the reading assignment, why are the dollar figures under the "Budgeted" column usually larger than those in the "Actual" column for FLEXIBLE EXPENSES?

• Because flexible expenses always cost more

• Because flexible expenses always result in a surplus

• Because flexible expenses can vary, it's important to overestimate their cost

• Because flexible expenses are always easier to track

True or False: Once you have created your budget plan, you are set until you change jobs or change income.

• True

• false

A budget can help you reach a financial goal by:

• Showing you how you can earn more income

• Allowing you to see where you can cut back on spending

• Giving you the tools to change more fixed expenses to flexible expenses

• All of the above