PF (6)

The most common time frame individuals use when developing a budget is __________.

• Daily

• Weekly

• Monthly

• Yearly

Which formula represents the math used to create a basic budget?

• (Sum of all income) -- (Sum of all expenses)

• Surplus -- Deficit

• (Income + Taxes + Insurance) -- Expenses

• Gross income -- Net income

If you have a budget deficit and are trying to distinguish between needs and wants in your budget, which question is MOST helpful?

• Will there be a bad consequence if I don't buy this item?

• Do all of my friends have this item?

• Will this item last more than one year?

• Does this item make me happy?

In which scenario below would an unlimited data plan on your smartphone be best classified as a NEED?

• If it allows you to check email and get updates on Twitter during class

• If you don't have wifi at home and it allows you to complete homework assignments

• If it gives you the ability to use a mobile wallet instead of a debit or credit card

• If it keeps you entertained by allowing you to stream videos anywhere

When creating a budget, which list below portrays expense categories in the most responsible order?

• All of your needs, high priority wants, low priority wants, savings

• All of your needs, savings, high priority wants, low priority wants

• All of your needs, high priority wants, savings, low priority wants

• Savings, high priority wants, low priority wants, all of your needs

Which item below would MOST PEOPLE consider a need and why?

• A week's vacation, to decompress from the stresses of work or school

• Professional SAT prep tutoring, to guarantee a high score and college admissions

• A new laptop every 2 years, so you can work quickly and efficiently

• Auto insurance, to minimize your financial risk if you cause a major accident

How can the college you choose to attend impact your future adult budget?

• Any student loans you owe will become a necessary expense in your budget

• Students who attend more expensive colleges earn more income once they start working

• The budget you create during freshman year will be the same budget you use until age 30

• Your scholarship money will impact your taxes for years to come

How are savings and budgeting related?

• Once you save enough money, you will no longer need to budget

• A good budget will help control your spending and enable higher saving

• The more money you save, the higher amount of income you will have available to spend

• Saving is the final amount of money you have leftover in any monthly budget

How can completing a budget be beneficial to your health?

• A budget reduces your insurance premiums, making it easier to get access to health care

• A budget reduces the mental and emotional stress of never knowing if you'll have enough to cover expenses

• A budget increases your income, letting you spend more on healthy foods, gym memberships, etc.

• A budget increases your heart rate, cholesterol, and other health metrics

Which of these typically represents a fixed cost in a monthly budget?

• Rent or mortgage

• Car maintenance

• Dining out

• Groceries