Budgeting Quiz

What does the acronym SMART stand for in the context of financial goals?

• Sensible, Manageable, Attainable, Reasonable, Thoughtful

• Strategic, Motivating, Ambitious, Resourceful, Targeted

• Sustainable, Meaningful, Achievable, Relevant, Time-bound

• Specific, Measurable, Action-oriented, Realistic, Timely

What is an example of a short-term financial goal?

• Saving for a house

• Saving for a car

• Saving for retirement

• Saving for college

What is the purpose of an emergency fund?

• To save for a vacation

• To save for a car

• To save for college

• To cover unexpected expenses

What are fixed expenses?

• Expenses that change month-to-month

• Expenses that are the same every month

• Expenses for entertainment

• Expenses for groceries

What is the key to maintaining a balanced budget?

• Neither increasing income nor reducing expenses

• Both increasing income and reducing expenses

• Reducing expenses

• Increasing income

What does it mean to have a budget surplus?

• Income and expenses are unknown

• Income is equal to expenses

• Expenses are greater than income

• Income is greater than expenses

What is the consequence of having expenses exceed income in the long term?

• Achieving financial goals

• Building savings

• Increasing income

• Accumulating debt

What is one way to reduce expenses in order to balance a budget?

• Invest in stocks

• Spend less on variable expenses

• Increase income

• Save more money

What is one way to increase income in order to balance a budget?

• Cut back on fixed expenses

• Work overtime or get a second job

• Save more money

• Reduce expenses

Why is it important to get your budget back into balance?

• To decrease income

• To increase expenses

• To achieve financial goals

• To accumulate more debt