PFLE Unit 5 Test review

What is budgeting?

• The process of maximizing profits by minimizing expenses.

• The process of investing in high-risk financial ventures.

• The process of creating a plan to manage and allocate financial resources.

• The process of tracking expenses after they have been incurred.

Why is budgeting important for personal finance?

• Budgeting is not important for personal finance.

• Budgeting only helps individuals track their income.

• Budgeting helps individuals track their income and expenses, prioritize their spending, and save for future goals.

• Budgeting is only necessary for short-term financial goals.

What are the key components of a budget?

• income, expenses, savings, and financial goals

• income, expenses, savings, and investments

• income, expenses, savings, and assets

• income, expenses, savings, and debts

What is the difference between fixed and variable expenses?

• Fixed expenses are costs that change from month to month, while variable expenses remain the same each month.

• Fixed expenses are costs that are not necessary, while variable expenses are essential.

• Fixed expenses are costs that can be easily reduced, while variable expenses cannot be reduced.

• Fixed expenses are costs that remain the same each month, while variable expenses can change from month to month.

What are the benefits of saving money?

• Higher debt, limited financial options, inability to achieve financial goals

• Financial security, emergency fund, future investments, achieving financial goals

This type of personal bankruptcy filing "forgives" most of your debt.

• Chapter 7

• Chapter 11

• Chapter 12

• Chapter 13

Which of these debts is NOT discharged through bankruptcy filing in TX?

• Child Support

• Credit cards

• Car loan at the bank

• Your account at Home Depot

If you as an individual just need to restructure (reorganize) your debts so that you can make the payments, you would most likely file which of the following types of bankruptcy?

• Ch 7

• Ch 11

• Ch 12

• Ch 13

How long can you expect a Chapter 7, ordinary bankruptcy filing, to remain on your credit report?

• 3 years

• 7 years

• 10 years

• It stays with you forever

Voluntarily donating money, goods, or services to organizations or individuals in need, without any expectation of receiving something in return.

• Tithing

• Charitable Giving

• Paying it forward

• Live and Learn