Budget

People create and keep a personal budget to help them _____.

• set and reach financial goals

• apply for loan

• buy anything they want

• earn promotions at work

For which item would someone most likely need to save money in order to

purchase?

• a washing machine

• a tub of ice cream

• dinner for two

• a pair of socks

Which of the following are considered WANTs? (You can choose more than one.)

• Concert tickets

• Water

• A new pair of shoes

• Rent

• Medical fees

Which of the following statements about money is false?

• Money can buy happiness.

• Money is a tool.

• Everyone needs money to purchase goods.

• A penny saved is a penny earned.

The first step in creating a budget is _________.

• know your income

• determine fixed expenses

• determine variable expenses

• review periodically

Lola is saving for a vacation. Based on the budget numbers here, how much can she put in her vacation account this month?

• $32.00

• $48.00

• $112.00

• $128.00

Gabby wants to buy a new dishwasher that costs $500. She has already saved $100. She earns $1,200 a month and her total monthly expenses come to $1,000. Gabby is going to put all of her extra money each month into her savings account for the dishwasher. Assuming her expenses stay the same, how long will it take Gabby to save enough money for the dishwasher?

• three months

• Two monthes

• five months

• one month

Tina earned $15 doing laundry and $9 washing the car last month. She created a balanced budget for her earnings. Which table could show Tina’s budget?

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