Financial Goals and Budget Quiz

What is an irregular expense?

• An expense that does not change from period to period.

• Expenses that change from month to month.

• Costs that come up throughout the year, but do not occur regularly

• All of the above

Which of the following is not an example of a deduction?

• Group Insurance

• Dependent

• Social Security

• Income Tax

Which of the following is an example of a variable expense?

• Utility bills

• Taxes

• Gas

• Medical bills

True or False: Gross income is your total pay after taxes

• True

• False

What is the first step in creating a budget?

• Set your goals, and include them in your budget.

• List all your fixed expenses

• Add up all your income.

• List all your variable expenses, starting with your needs first.

What is the difference between gross pay and net pay?

• Gross pay is after taxes and net pay is before taxes.

• There is no difference.

• Gross pay is before taxes and net pay is after taxes.

• The difference is determined primarily by your current tax bracket.

In order to effectively manage money, you need a:

• High Paying Job

• Budget

• Computer

• Online Checking Account

Sam started a college fund for his son when he was born. Each month he transfers $100 from his checking account to the fund. By doing this, he is both _________ and ___________.

• saving and investing

• saving and borrowing

• spending and saving

• investing and borrowing

After each payday, Patricia pays her utility bills and purchases one reward item for herself. Additionally, she transfers $150 into her savings account for her trip to Hawaii next year with her best friends. By doing this, he is both _________ and ___________.

• saving and borrowing

• saving and investing

• spending and saving

• investing and borrowing

What is the term for the money you earn?

• Savings

• Expense

• Income

• Interest