Financial Literacy Chapter 2 Review

What percent of Americans actually use a budget?

• 75%

• 23%

• 50%

• 35%

Which of the following is not a component of budgeting?

• credit score

• saving

• income

• giving

What are the Four Walls?

• Utilities, college fund, restaurants, and car insurance

• cell phone bill, car insurance, shelter, and money for the movies

• Food, utilities, transportation, and college fund

• Food, utilities, shelter, and transportation

How often should you create a budget?

• Daily

• Weekly

• Monthly

• Biannually

What does a budget show you?

• How much you need to save

• How much money you plan to come in and go out during the month

• How much money you need to earn

• How much money you spent last month

Detailed categories on your budget will help you make better spending decisions.

• True

• False

A budget says what will happen with your money, while a cash-flow statement shows what already happened.

• True

• False

Going to the movies is an example of what types of expenses?

• Intermittent and variable

• Discretionary and Variable

• Discretionary and fixed

• Intermittent and fixed

Net income is the amount you get paid before taxes.

• True

• False

Why is tracking your expenses throughout the month important?

• It allows you to delete categories you don't like.

• It gives you insight into whether you're sticking to the budget you set.

• It helps you pull money from your savings to spend in other categories.

• It really isn't that important in the long run.