Chapter 3 - Budgeting

Which of the following is a consequence of overdrawing your checking account?

• bounced check fee from the store

• stress from money mismanagement

• overdraft fee from your bank

• all the above

Doing a budget does not:

• show if you are overspending in an area

• make overspending more likely

• remove guilt and shame sometimes associated with a purchase

• make your money go further

Your monthly budget should include:

• variable expenses

• fixed expenses

• discretionary expenses

• all the above

Which of the following is a false statement:

• a cash flow statement summarizes all of the income and outgo (spending) over a certain period of time

• a budget is a written plan for saving and spending

• a budget is meant to summarize the saving and spending that has taken place over the past year

• the cash flow statement is reflective of what has already taken place

Which of the following is something that a typical millionaire would do?

• lease a new car

• replace things that are not broken

• spend less money than he or she makes

• carry debt

Rent is a:

• fixed expense

• variable expense

• discretionary expense

• intermittent expense

Eating out is a:

• fixed expense

• variable expense

• discretionary expense

• intermittent expense

Car repairs are a :

• fixed expense

• variable expense

• discretionary expense

• intermittent expense

Groceries are a:

• fixed expense

• variable expense

• discretionary expense

• intermittent expense

A written budget, if followed, removes ______ from your finances.

• overspending

• guilt

• management by crisis

• all the above