Budgeting

Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?

• 50% needs, 30% wants, 20% savings

• 50% budget, 30% needs, 20% wants

• $50 needs, $30 wants, $20 savings

• 50% saving, 30% needs, 20% wants

Complete this sentence: The federal government budgets its tax money on three large buckets of expenses -- mandatory spending, discretionary spending, and .....

• budget funds

• interest on debt

• the Constitution

• free programming

Creating a budget can make you feel powerful! Why?

• You can't really budget unless you have an important job, which means that other people look up to you

• A budget puts you in control of your spending and saving, so you make good decisions and feel more confident

• Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things

• People who budget earn more money, so they can live a better life

Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...

• Rent

• Clothing

• Renters insurance

• Cell phone plan

Justine's part-time job pays her $8 per hour. She works for 10 hours this pay period. How much is her gross pay?

• $80

• $80, plus any taxes she has to pay

• $8

• $80, minus any taxes she has to pay

Why is it important to be able to decide if an item is a NEED or a WANT?

• Needs are worth spending money on, but you should never spend on a want

• Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them

• When you budget, you should make sure all your needs are met first, then you can decide to spend on wants

• You cannot create a budget that has both needs and wants included -- you need them each in a separate budget

Why should you use your NET pay when creating a budget?

• Your employer knows what your gross pay is, but you only know what your net pay is

• Your net pay will always be higher, so you'll have more money to spend

• Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget

• Your net pay is a more accurate picture of how much money you have available to spend or save

Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

• Will something bad happen if I don't have this item?

• How happy will this item make me?

• Do any of my friends have this item?

• Will my teachers be excited if I buy this item, or will they be disappointed?

Brandon receives his paycheck, and it says his gross pay is $250 and his net pay is $200. How much money did he have in deductions this pay period?

• $50

• $250

• $450

• $200

Who has to pay taxes to the US government?

• Every citizen, regardless of their age or working status

• No one has to - taxes are a voluntary program

• Every person or company that earns income in the US

• Anyone who owns a home or attends a public school