50/30/20 Rule

What is the 50/30/20 rule?

• A budgeting guideline that suggests allocating 50% of income to needs, 30% to savings or debt repayment, and 20% to wants.

• A budgeting guideline that suggests allocating 50% of income to needs, 30% to wants, and 20% to savings or debt repayment.

• A budgeting guideline that suggests allocating 50% of income to savings, 30% to needs, and 20% to wants.

• A budgeting guideline that suggests allocating 50% of income to wants, 30% to needs, and 20% to savings or debt repayment.

Tags

CCSS.7.RP.A.1

CCSS.7.RP.A.2

CCSS.7.RP.A.3

Which subtopic does the 50/30/20 rule primarily focus on?

• savings and investments

• credit card management

• tax planning

• budgeting and personal finance

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What percentage of income should be allocated to needs according to the 50/30/20 rule?

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What percentage of income should be allocated to wants according to the 50/30/20 rule?

• 70%

• 50%

• 30%

• 10%

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What percentage of income should be allocated to savings according to the 50/30/20 rule?

• 10%

• 40%

• 20%

• 30%

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

Which of the following is NOT a subtopic of the 50/30/20 rule?

• Investing

• None of the above

• Savings

• Budgeting

What is the purpose of the 50/30/20 rule?

• The purpose of the 50/30/20 rule is to decide how much time to spend on different tasks.

• The purpose of the 50/30/20 rule is to provide a simple and effective way to budget and manage personal finances.

• The purpose of the 50/30/20 rule is to calculate the ideal temperature for a room.

• The purpose of the 50/30/20 rule is to determine how much to tip at a restaurant.

Tags

CCSS.7.EE.B.3

CCSS.7.RP.A.2

CCSS.7.RP.A.3

Which of the following is NOT a recommended allocation according to the 50/30/20 rule?

• Saving 10% of income for debt repayment

• Investing 20% of income in stocks

• Saving 40% of income for retirement

• Spending 30% of income on wants

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What does the 50/30/20 rule suggest allocating 30% of income for?

• discretionary spending

• groceries

• rent/mortgage

• savings

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What does the 50/30/20 rule suggest allocating 20% of income for?

• food and groceries

• entertainment and leisure

• savings and investments

• rent and utilities

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3