Budgeting Quiz

What is the difference between Net Pay and Gross Pay?

• Net Pay is before taxes and deductions, while Gross Pay is take-home pay.

• Net Pay is take-home pay, while Gross Pay is before taxes and deductions.

• Net Pay is the total income, while Gross Pay is the total expenses.

• Net Pay is the total expenses, while Gross Pay is the total income.

Which source of income should you use for budgeting?

• Gifts

• Allowance

• Interest income

• Your job

What should be your largest expense when creating a budget?

• Housing

• Transportation

• Food

• Entertainment

What is the purpose of tracking your spending?

• To estimate your income

• To set financial goals

• To record your purchases

What should you do with receipts, bills, and other financial documents?

• Throw them away

• Keep them in a folder or envelope

• Ignore them

What should you do if your income is greater than your expenses?

• Increase your expenses

• Decrease your income

• Adjust your budget to save more

• Ignore the surplus

Rohan, Grace, and Sophia are having a debate about the 50/30/20 budgeting method. Can you help them figure out what it means?

• 50% of income goes to savings, 30% is kept as cash, and 20% is used for expenses.

• 50% of income is used for expenses, 30% goes to savings, and 20% is allocated for wants.

• 50% of income goes to savings, 30% is used to pay off liabilities, and 20% is kept as cash.

• 50% of income is used for expenses, 30% is allocated for wants, and 20% goes to savings or debt payments.

What is the purpose of having an emergency fund?

• To pay for unexpected expenses

• To invest in stocks and bonds

• To save for retirement

• To pay off debts

According to the principle of PYF, if Chloe is earning $2995 a month, how much should she be putting into savings?

• $299.50

• $468.75

• $500.00

• $215.00

Abigail, Michael, and Emma are playing a game of Monopoly. Emma is faced with a situation where she has to trade off for one decision or another. This situation is best described as a...

• current liability

• deficit

• opportunity cost

• long term liability