Budgeting Unit Review

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Loan payment on a new car

• Expenses for new clothes

• Dining out at local restaurants

• Postponing a purchase for a big-screen TV

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating  a $16,000 emergency fund. How long will it take for you to achieve your goal?

• 3 years

• 6 months

• 2 years

• 1 year

If you are trying to substantially reduce the amount you spend on food, you should try...

• Dining at restaurants more often so you don't waste water doing dishes

• Drinking more coffee and soda so you are not as hungry for food

• Cooking your own food at home for as many meals as possible

• Eating more snacks on the go and way fewer meals at home

Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

• Average rent for an apartment

• Employment opportunities

• Food and grocery store options in the area

• Average cost of Uber, Lyft, or taxi fare

Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?

• There are several public transportation routes between Greg's apartment and work

• The cost of public transportation is less than Greg’s monthly car payment

• Greg’s company covers half the cost of his monthly public transportation pass

• Using public transportation, Greg’s commute to work one-way is two hours

Which of these boxes of cereal has the LOWEST unit price?

• Cereal A, which costs $3.20 for a 16 oz. box

• Cereal B, which costs $5.00 for a 32 oz. box

• Cereal C, which costs $2.50 for a 10 oz. box

• Cereal D, which costs $4.50 for an 8 oz box

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

• His gross and net pay are $3,000

• His gross pay is $3,000 and net pay is $2,500

• His gross and net pay are $2,500

• His gross pay is $2,500 and net pay is $3,000

You are putting together your first post-graduation budget.  Your net pay is $2,500 per month and you estimate that your monthly expenses will be $2,625.  How would you describe your budget?

• You have a deficit of $125

• You have a surplus of $2,500

• You have a deficit of $2,625

• You have a surplus of $125

You are interested in renting an apartment after graduating college. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT

• Proof of employment

• First and last month's rent

• A security deposit

• A bank account

All of the following are good budgeting strategies if you want to save money at the grocery store EXCEPT:

• Focusing on unit price when comparing similar products

• Focusing only on the price when comparing similar products

• Building a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat

• Preparing a grocery list before you go to the store and avoiding buying items that aren’t on the list