Budgeting Test Review

Costs that do not change from month to month.

• Variable Expenses

• Budget

• Neccessities

• Fixed Expenses

A plan for making and spending money.

• Budget

• Discretionary Income

• Disposable Income

• Variable Expenses

Money that remains after you have paid taxes for spending/saving

• Discretionary Income

• Variable Expenses

• Fixed Expenses

• Disposable Income

Money that remains after you have paid for the necessities.

• Discretionary Income

• Variable Expenses

• Disposable Income

• Budget

Spending is essential when it comes to personal finances, so you don't need to create a budget.

• True

• False

To be financially savvy, you always want to ensure your expenses are always higher than your income.

• True

• False

If you rent or buy a place, it is essential to have a budget set aside for furniture, etc., for your place.

• True

• False

Illness or accidents are just a part of life, it's smart to have health insurance to help protect yourself.

• True

• False

Which one of these expenses most likely represents a FIXED cost in someone's budget?

• Rent

• Electricity Bill

• Groceries

• Medical Bill

Which one of these expenses most likely represents a VARIABLE cost in someone's budget?

• Insurance Bill

• Entertainment

• Car Payment

• Internet Bill