Smart Shopping

Which of the answers below best describes Opportunity Cost?

• The amount of money you save by purchasing things on sale.

• The trade-off of making one choice and giving up another choice.

• The amount of money you put into savings each year.

• The benefit you gain by choosing one option versus another.

Which of the following would be considered a want rather than a need for most people?

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In researching where to buy a new computer, to find the fairest and most reliable information, you should?

• Check the website of the most popular computer company.

• Check advertisements in a Computer Magazine.

• Use an independent consumer website that reviews/rates computers.

• Get advise from the salesperson that earns a commission on sales.

When creating your budget, what should you include?

• All income and expenses.

• All income and fixed expenses.

• All income except variable expenses.

• All income and expenses except for taxes.

If a friend asked you to help them create their budget, which expense would you tell them is NOT a need?

• Cable Service.

• Rent payment.

• Car insurance.

• Groceries.

If you know the unit price of two different brands of an item, you are better able to ______________________________.

• Estimate how much of the item you will need.

• Compare the prices of the two brands.

• Decide which brand is higher quality.

• Figure out the discount during a sale on the two items.

Which of the options below is a variable expense for most people?

• Rent payment.

• Car payment.

• Health insurance payment.

• Cost of eating out at a restaurant.

If you received $50 for your birthday and spent it on new wallpaper, the Opportunity cost of this decision is:

• The price of the wallpaper you bought.

• The other items you could have bought with $50.

• The time you could have spent choosing other things.

• All of the other answers are correct.

Which of the following is NOT true of a budget?

• Budgets help you plan how to spend money you earn or receive.

• A budget can include charitable giving.

• Budgets include both income and expenses.

• Once a budget is set, it should never be revisited.

Which of the following is NOT a successful budgeting strategy?

• Save some extra money in your budget for emergencies.

• Pay with a credit card if you struggle sticking to your budget.

• Budget for you most important needs.

• Revisit your budget regularly and make necessary adjustments.