Pre-Test Review

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

Which of the following is NOT considered a type of income?

• Tips

• Cash from Garage Sale

• Commisions

• Savings from buying items on sale

The FIRST step in creating a budget is?

• Know your income

• Determine Variable Expenses

• Determine Fixed Expenses

• Review Periodically

What is an expense?

• Money you spend

• Money you put away from later

• Money you Earn

• Money you find

Money that you have after taxes and other deductions- Also called "Take Home Pay"

• Monthly Income

• Net Income

• Gross Income

• Taxable Income

Money paid to you for keeping your money in an an account OR fees charged to you for a loan or credit cards.

• Maintenance

• Insurance

• Expense

• Interest

True or False? A credit card and a debit card work the same.

• True

• False

Answer explanation

Credit Cards extend you credit to buy things you want and pay back later. Debit Cards pull money directly from your account.

True or False? You should always check your paystub

• True

• False

The Expenses section of a personal budget......

• Should be more than your income

• Shows how much you spend that month

• Includes interest and investments

• Is not important if you Income is more

Which Expense is the MOST difficult to adjust if you need to reduce your expenses?

• Car Payment

• Postponing a purchase for a big screen tv

• New Clothes

• Eating out in restaurants