Budgeting - Unit Test

First Name:

Last Name:

Hour/Class:

1. Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Dining out at local restaurants
• Loan payment on a new car
• Expenses for new clothes
• Postponing a purchase for a big-screen TV

2. You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?

• 6 months
• 1 year
• 2 years
• 3 years

3. If you are trying to substantially reduce the amount you spend on food, you should try...

• Cooking your own food at home for as many meals as possible
• Dining at restaurants more often so you don't waste water doing dishes
• Eating more snacks on the go and way fewer meals at home
• Drinking more coffee and soda so you are not as hungry for food

4. Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

• Average rent for an apartment
• Food and grocery store options in the area
• Employment opportunities
• Average cost of Uber, Lyft, or taxi fare

5. Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?

• There are several public transportation routes between Greg's apartment and work
• The cost of public transportation is less than Greg’s monthly car payment
• Greg’s company covers half the cost of his monthly public transportation pass
• Using public transportation, Greg’s commute to work one-way is two hours

6. Which of these boxes of cereal has the LOWEST unit price?

• Cereal A, which costs $3.20 for a 16 oz. box
• Cereal B, which costs $5.00 for a 32 oz. box
• Cereal C, which costs $2.50 for a 10 oz. box
• Cereal D, which costs $4.50 for an 8 oz box

7. Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

• His gross pay is $2,500 and net pay is $3,000
• His gross and net pay are $3,000
• His gross and net pay are $2,500
• His gross pay is $3,000 and net pay is $2,500