PF 4.1 - 4.3 Check for Understanding

Elijah, Abigail, and Scarlett are planning a fun budgeting game! They want to know which action is most aligned to the goals of using a zero-based budget. Can you help them out?

• Elijah suggests they bring their checking account balance to $0 every week, even if it means they overdraw their account often

• Abigail thinks they should be sure to have one or more budget lines for saving so that it doesn’t get left as an afterthought

• Scarlett says if, at the end of their budgeting they end up with $185 leftover, they should just spend that on fun stuff

• They all wonder if they should try not to seek out more sources of income, because then their budget will no longer work

Aria, Kai, and Hannah are helping Alyssa to label envelopes for her new cash envelope budgeting system. They are having a fun time deciding what each envelope should be for. Which envelope do you think they probably won't make?

• An envelope for Alyssa's online cell phone bill payment of $64

• An envelope for the $100/month Alyssa’s planning to spend on clothes, shoes, and accessories during mall trips with her friends

• An envelope for the $28/month Alyssa’s limiting herself to at her favorite coffeeshop

• An envelope for the $15/month Alyssa plans to use for thrift shopping at the flea market every third Saturday with her grandma

Imagine Lily, Aiden, and Olivia are planning a budget party. They decide to follow the 50/30/20 rule. Can you guess what two items they would put into the 20 category?

• Wants & needs

• Saving & debt repayment

• Income & expenses

• Fixed & variable costs

Henry, Lily, and Abigail are planning a fun budgeting game! Can you help them understand which statement best summarizes how income and expenses are used in a budget?

• Each income line that Henry has, has one expense line attached to it in their budget game

• In their budget game, the total income of Lily plus the total expenses of Abigail forms the budget

• In their budget game, the total income of Abigail minus the total expenses of Henry forms the budget

• In their budget game, income and expenses mean basically the same thing

Imagine Rohan and Benjamin are twins, and they have 3 older siblings including Abigail. Can you guess which statement best describes the difference between needs and wants in their lively family?

• Everyone in this family likely has different needs and wants

• Everyone in the family has different needs but the same wants

• Everyone in the family has the exact same needs and wants

• Actually, everyone on the planet has the same needs and wants

Imagine Ava, Mason, and Lily are working in the gig economy and have uneven earnings throughout the year. What would be the best strategy for them to manage their budget?

• Only pay their bills in months where they’ve earned above their typical amount

• Each month, invest their earnings in the stock market to try to double their money

• On months where they earn more than average, save the extra rather than spending it

• Be sure they spend the exact same amount every month, regardless of how much income they had

Imagine Ava, Mason, and Lily are working in the gig economy and have uneven earnings throughout the year. What would be the worst strategy for them to manage their budget?

• Only pay their bills in months where they’ve earned above their typical amount

• Each month, invest their earnings in the stock market to try to double their money

• On months where they earn more than average, save the extra rather than spending it

• Be sure they spend the exact same amount every month, regardless of how much income they had