Budgeting Vocabulary Quiz

1.A plan for future spending and saving, weighing estimated income against estimated Expenses.

• Gross Income

• Debt

• Expense

• Budget

9.An account where money is kept for future use.

• Income Tax

• Overdraft Fees

• Savings Account

• Checking Account

Budgeting is crucial to your financial success.

• True
• False

Why is budgeting important?

• It's good to live pay check to paycheck
• You should always live at your parents house
• You might get into a house or other large expense  you can’t afford
• Always spend more than you can afford

Which of the following is an example of a variable expense

• Food
• Rent
• Car payment
• Student loan

What is a need?

• Something you must have

• Something you'd like to have

• Something you would like to do

• All of the above

Of all the choices, which one should you budget for first?

• Groceries

• Entertainment

• Cell Phone Bill

• New Car

If an expense can be cut from your budget to save money, it is considered a ______.

• want

• need

• income

• savings

When making a budget, a person’s needs should come before their wants.

• True

• False

Which of the following is generally the most expensive category in a person’s budget?

• Healthcare

• Clothing

• Transportation

• Housing