2022 Final Exam May 27, 2022 - test 2

In 50/30/20 rule of thumb, what does "20" represent?

It is more important to spend money on wants instead of needs.

• True

• False

If Aliyah earns $10,000 a month, how much should she commit to her savings if she saves 20% of her earnings?

• $500

• $2500

• $2000

• $1000

If Mark earns $10000 per month, how much should he commit to spending on his wants? (no more than 30%)

• $30

• $4500

• $3000

• $500

What are wages?

What is a salary?

Imagine you have $25. Your best friend’s birthday is coming up and you’d like to get them a gift. You’ve also been wanting to buy a new backpack since your current one has some holes in it. What do you decide to do with your $25? Why?

What does 'Pay yourself first" mean?

• Set money aside for savings

• Buy your favorite pair of shoes

Short-term goals are:

• 5 years or more

• less than one year

• between 3 and 5 years

Long-term savings goals are:

• more than 5 years

• less than one year

• 3-5 years