Budgeting Quiz

Why is it important to be able to decide if an item is a NEED or a WANT?

• You cannot create a budget that has both needs and wants included -- you need them each in a separate budget

• Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them

• Needs are worth spending money on, but you should never spend on a want

• When you budget, you should make sure all your needs are met first, then you can decide to spend on wants

Katie plans on using the 50/30/20 rule for budgeting. How will she split her budget?

• 50% needs, 30% wants, 20% savings

• 50% saving, 30% needs, 20% wants

• 50% budget, 30% needs, 20% wants

• $50 needs, $30 wants, $20 savings

How much money has this employee paid in deductions during this pay period?

• $692.24

• $50.00

• $0

• $15,921.52

Creating a budget can make you feel powerful! Why?

• You can't really budget unless you have an important job, which means that other people look up to you

• People who budget earn more money, so they can live a better life

• A budget puts you in control of your spending and saving, so you make good decisions and feel more confident

• Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things

The two main portions of a budget are...

• the money coming in (expenses) and the money you're spending (income)

• the money coming in (income) and the money you're spending (expenses)

• the cash you are spending in stores and the bills you are paying online

• the items you want to buy and the money you need to save for retirement

Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

• Will my teachers be excited if I buy this item, or will they be disappointed?

• Will something bad happen if I don't have this item?

• Do any of my friends have this item?

• How happy will this item make me?

James has just moved into his own apartment and is working full time. Each item below would go into his budget in the "Monthly Bills" category EXCEPT...

• Clothing

• Cell phone plan

• Rent

• Renters insurance

Three of these items represent services provided by the federal government using taxpayer money. Which one represents a personal expense instead?

• Military protection

• Auto insurance

• NASA space program

• Medicare and Medicaid

How much money has this employee earned in gross pay this pay period?

• $46,000.00

• $1,307.76

• $2,000.00

• $30,078.48

Kevin is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Kevin?

• He loves watching movies, and he's already paid for all the streaming services, so now he needs the data

• He has so many social media accounts, and he needs to be able to check them throughout the day, even while in school

• He has an hour-long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online

• Unlimited data will allow him to play video games with his friends even when he's not at home, and he LOVES video games