Understanding Basic Budgeting Quick Quiz

Which of the following are advantages of creating a budget? (Select all answers that apply)

• Budget can provide peace of mind

• Budgets can give you control over your money

• Budgets can help you avoid impulse buying

• Budgets take time

• Budgets are fun!

Using the attached scenario and budget, choose any answer below that would be a piece of advice that helps Lianna save more money each month.

• Ride the bus to school

• Hang out with her friends more

• Eat the meals her parents make at home instead of going to restaurants with her friends,

• Use her car more

Which of these are examples of a fixed expense? (Select all that apply)

• Monthly Car Payment

• Groceries

• Entertainment Costs

• Mortgage or rent

• Gas for your car

What term means spending money on non-necessities or "wants"?

• variable expense

• fixed expense

• impulse buying

• discretionary spending

Which of these are example of a variable expense? (Select all that apply)

• Rent

• Groceries

• Car Payment

• Gas for your car

Which is a benefit of developing a budget and sticking with it? (select all that apply)

• You can't buy what you want

• You are likely to miss bill payments

• You are more likely to pay off debts and save money

• None of the above

• All of the above

What are unplanned, spontaneous purchases sometimes triggered by emotions?

• fixed expenses

• impulse buying

• prioritizing

• all of the above

Budgets are the cause of many people's debt.

• True

• False

An emergency cash fund is dedicated to covering unexpected expenses that come up.

• True

• False

Mr. Hare is budgeting to save up to buy the new Nike HyperAirDunkMaxPaulGeorgeNewBalance 32's.  They cost $575.  

If Mr. Hare has a monthly cash surplus of $200, how many months will it take him to save enough money to buy the shoes?

• 1

• 2

• 3

• 4

• 5