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.

Tags

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.

Tags

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.6.RP.A.3C

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.

Tags

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.

Tags

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.

Tags

CCSS.7.RP.A.3

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