Budget Review

Explain the concept of Zero-Based Budgeting.

• A budgeting method where all expenses start from zero and must be justified for each budgeting period.

• A budgeting method where expenses are based on the previous budgeting period.

• A budgeting method where expenses are fixed and cannot be changed.

• A budgeting method where expenses are flexible and can be adjusted as needed.

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CCSS.7.EE.B.3

CCSS.7.NS.A.1

CCSS.7.NS.A.3

CCSS.7.RP.A.2

CCSS.7.RP.A.3

Provide an example of a scenario related to the concept of Zero Based Budget.

• A person creating a budget for the first time and starting from scratch.

• A person using the same budget as the previous month.

• A person with fixed expenses that cannot be changed.

• A person with flexible expenses that can be adjusted.

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CCSS.7.EE.B.3

CCSS.7.NS.A.1

CCSS.7.NS.A.3

Explain the concept of 50/30/20.

• A budgeting method where 50% of income is allocated to needs, 30% to wants, and 20% to savings or debt repayment.

• A budgeting method where 50% of income is allocated to wants, 30% to needs, and 20% to savings or debt repayment.

• A budgeting method where 50% of income is allocated to savings or debt repayment, 30% to needs, and 20% to wants.

• A budgeting method where 50% of income is allocated to savings or debt repayment, 30% to wants, and 20% to needs.

Tags

CCSS.7.RP.A.1

CCSS.7.RP.A.2

CCSS.7.RP.A.3

Provide an example of a scenario related to the concept of 50/30/20.

• A person allocates 50% of their income to savings or debt repayment, 30% to needs, and 20% to wants.

• A person allocates 50% of their income to needs, 30% to wants, and 20% to savings or debt repayment.

• A person allocates 50% of their income to wants, 30% to needs, and 20% to savings or debt repayment.

• A person allocates 50% of their income to savings or debt repayment, 30% to wants, and 20% to needs.

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CCSS.7.RP.A.2

CCSS.7.RP.A.3

Explain the concept of the Cash Envelope Budget.

• A budgeting method where cash is allocated into different envelopes for different spending categories.

• A budgeting method where cash is not used and all transactions are done electronically.

• A budgeting method where cash is kept in a single envelope for all expenses.

• A budgeting method where cash is not used and all transactions are done using credit cards.

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.3

Provide an example of a scenario related to the concept of Cash Envelope Budgeting.

• A person allocating cash into envelopes for groceries, entertainment, and transportation expenses.

• A person using credit cards for all expenses and not using cash.

• A person keeping all their cash in a single envelope for all expenses.

• A person using electronic transactions for all expenses and not using cash.

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.1

CCSS.7.NS.A.3

How is gross pay different from net pay?

• Gross pay is the total amount of money earned before deductions, while net pay is the amount of money received after deductions.

• Gross pay is the amount of money received after deductions, while net pay is the total amount of money earned before deductions.

• Gross pay is the amount of money received after taxes, while net pay is the total amount of money earned before taxes.

• Gross pay is the total amount of money earned before taxes, while net pay is the amount of money received after taxes.

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CCSS.7.RP.A.2

CCSS.7.RP.A.3

Name three expenses that are most likely to represent a variable cost in someone’s budget.

• Entertainment, groceries, and transportation.

• Rent, utilities, and insurance.

• Debt repayment, savings, and investments.

• Taxes, healthcare, and education.

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CCSS.7.EE.B.3

CCSS.7.RP.A.2

What does it mean to “Pay yourself first” on payday?

• Allocate a portion of your income to savings or investments before paying for other expenses.

• Allocate a portion of your income to fixed expenses before paying for other expenses.

• Allocate a portion of your income to variable expenses before paying for other expenses.

• Allocate a portion of your income to wants before paying for needs.

What is the largest category of expenses for the average American household?

• Housing

• Transportation

• Food

• Healthcare