Ch 2 Finance Review

Although the majority of Americans think budgeting is important, about______ of Americans actually use a budget.

• 75%

• 50%

• 23%

• 35%

Which of the following is NOT a component of a budget?

• Giving

• Income

• Saving

• Credit Score

What are the Four Walls?

• Utilities, college fund, restaurants, and car insurance

• Cell phone bill, car insurance, shelter, and money for the movies

• Food, utilities, transportation, and college fund

• 1. Food, utilities, shelter, and transportation

Online budgeting apps are more effective than budgeting with pen and paper.

• True

• False

• Neutral

How many categories should you have in your budget?

• 15

• 10

• 3

• No limit

How often should you create a budget?

• Daily

• Weekly

• Monthly

• Annually

If you get married, only one person is responsible for budgeting.

• True

• False

• Neutal

What does a budget show you?

• How much money you start with

• How much you need to earn

• How much money you need to save

• How much money you plan to come in and out

Detailed categories on your budget will help you make better spending decisions.

• False

• True

• Neutral

A cash-flow statement

• Shows what will happen to your money

• Shows what has already happened to your money