Budgeting Quiz

Why is it important to track expenses and income?

• There are no benefits to tracking expenses and income

• Tracking expenses and income only adds unnecessary stress

• It is not important to track expenses and income

• It is important to track expenses and income in order to have a clear understanding of financial health, make informed decisions, and plan for the future.

What are some common categories to include in a personal budget?

• Some common categories to include in a personal budget are: housing, transportation, food, utilities, insurance, debt payments, savings, and entertainment.

• Travel, dining out, and hobbies

• Pet care, gardening, and home decor

• Jewelry, electronics, and luxury items

How can setting financial goals help with budgeting?

• Setting financial goals has no impact on budgeting

• Budgeting is easier without any financial goals

• Setting financial goals helps prioritize spending and saving, which in turn helps with budgeting.

• Financial goals only create unnecessary stress and anxiety

How often should you review and adjust your budget?

• You should review and adjust your budget only when you have a major life event

• You should review and adjust your budget every 5 years

• You should review and adjust your budget on a regular basis, such as monthly or quarterly, to ensure it aligns with your financial goals and current expenses.

• You should review and adjust your budget once a year

What is the difference between fixed and variable expenses?

• Fixed expenses are only paid once a year, while variable expenses are paid monthly

• Variable expenses are only for luxury items, while fixed expenses are for necessities

• Fixed expenses are always higher than variable expenses

• Fixed expenses remain constant, while variable expenses can change from month to month.

How can you increase your income to meet financial goals?

• Borrowing money from friends and family

• Winning the lottery

• Spending less money

• Increase your income through career advancement, skill acquisition, investments, or starting a side business.