Money Management Review 2023

A budget can help you reach a financial goal by:

• Showing you how you can earn more income

• Allowing you to see where you can cut back on spending

• Giving you the tools to change more fixed expenses

• All of the above

_______________ are desires for goods and services we would like but do not need, and can do without.

• Needs

• Wants

• Budget

• Taxes

A _______________ is to have an estimate of income and expenditure for a set period of time.

• List

• Budget

• Guide

• File

Money in your emergency fund could be wisely used:

• to buy a new pair of shoes that went on sale

• to lend money to a friend to pay off credit card debt

• To pay for an unexpected health expense

• to put money down on a new car

Net pay is:

• equal to gross pay

• greater than gross pay

• what remains after deductions are subtracted from gross pay

• none of the above

Tax refunds:

• occur when a taxpayer's income tax withholding exceeds what they owe

• come from extra money the federal government has left over at the end of the year, and are distributed around February 15

• Come to taxpayers regardless of whether they file an income tax return or not

• include interest paid to the taxpayer by the federal government based on holding that money throughout the tax year

A budget is an important tool for managing one's money to achieve short- and long-term goals

• True

• False

A net worth statement shows one's financial position.

• True

• False

The W4 form:

• lists the number of people who claim the worker as a dependent on their tax returns.

• is filled out by each employee, stating the number of withholding allowances claimed.

• is a report sent from the employer to both the IRS and the employee showing gross wages.

• should be attached to the tax return with a staple when filing.

How much of your take-home pay should you try to save?

• 5%

• 10%

• 15%

• 20%