EPF Budgeting & Insurance TEST

How much money does the person in this budget have to invest each month?

• $4500

• $200

• $500

• $1000

Income after taxes is also known as:

• Net Income

• Gross Income

• Additional Income

• Adjusted Income

Which of the following is considered a "need" when budgeting?

• money for eating out
• money for going to the movies
• money to pay for your house
• money for your dog's toys

Which budgetary expenses are the same and due on the same day each month?

• non-recurring expenses

• whammy expenses

• variable expenses

• fixed expenses

What is a budget?

• An estimate of how much money people will give you.

• An estimate of how much money you will earn and how much you will spend.

• An estimate of how much money you will give to charity.

• A spending plan that only accounts for variable expenses.

Which of the following is an example of a fixed expense?

• Clothing

• Food

• Gas

• Rent

Which of the following is an example of a variable expense?

• Rent

• Food

• Car payment

• Health insurance

What is the first rule of financial literacy?

• Spend your money - you earned it.

• Always put your money in a safe place.

• Never lend money to friends.

• Pay yourself first.

What is the first step in creating a budget?

• Calculate how much money you want to spend on vacation.

• Calculate how much money you like to donate to charity.

• Calculate how much money you have available to loan to friends and family.

• Calculate how much money you earn and what you spend money on.

Which of the following is a reason to create a budget?

• Plan for a financial goal.

• Be able to spend all your money.

• To increase your chances in the lottery.

• ALL of the above.