Budgeting Unit Review

Which of the following costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Dining out

• buying new clothing

• car payment

Setting financial goals can help you create a budget by helping you determine.....

• your needs

• your wants

• your priorities

• your needs, wants and priorities

Why is it helpful to track your spending for 2 months?

• You can receive higher interest rates for your savings account when you can show how you spend your money

• You can receive special discounts at certain stores when you can show how you spend your money

• To identify your spending patterns and then prioritize your needs, wants, and savings goals

• To eliminate all spending on your wants

Which of the following was NOT one of the budgeting strategies you learned about?

• 50/30/20

• Pay Yourself First

• Powerful Methods

True or False: A budget can help you identify any bad spending habits.

• True

• False

Which of the following is NOT a strategy you can use to save money on groceries?

• use a small cart

• listen to music while shopping

• go shopping when you are hungry

• make a list

Which of the following are variable expenses (amount can change from month to month)

• car payment

• entertainment

• car insurance

• monthly rent

Which of the following is considered a need?

• a new car

• clothes dryer

• a place to sleep

• lunch at a local restaurant

For a budget to be balanced

• income must equal expenses

• unlimited spending is permitted

• income is not considered

• expenses are not considered

Items for which you must spend money are called

• net worth

• expenses

• assets

• income