Ramsey Chapter 2 Review

Taxes and withholdings impact your ____which is the amount of money you take home on your paycheck.

• Net Income

• Gross Income

• Irregular Income

• Income

To budget with a(n) _____, prioritize expenses from most to least important so your most important expenses are covered first.

• cash flow statement

• income

• irregular income

• gross income

A(n)_____ needs to be evaluated in light of your other expenses for the month.

• fixed expense

• discretionary expense

• variable expense

• net income

The cost of groceries and gas is considered a(n)___

• income

• discretionary expense

• fixed expense

• variable expense

.Although the majority of Americans think budgeting is important, about of Americans actually use a budget.

• A. 75%
• B. 50%
• C. 23%
• D. 35%

. Which of the following is NOT a component of a budget?

• A. Credit score
• B. Saving
• C. Income
• D. Giving

Online budgeting apps are more effective than budgeting with pen and paper

• True
• False

What are the Four Walls?

• A. Utilities, college fund, restaurants, and car insurance
• B. Cell phone bill, car insurance, shelter, and money for the movies
• C. Food, utilities, transportation, and college fund
• D. Food, utilities, shelter, and transportation

How many categories should you have in your budget?

• A. 15 or more
• B. No limit; use as many as you need to keep your budget accurate
• C. No more than 10
• D. At least 3

How often should you create a budget?

• A. Daily
• B. Weekly
• C. Monthly
• D. Biannually