6.1 and 6.2 Budgeting Quiz

How do you think keeping a budget can impact your overall well being?

Despite the reasons for keeping a budget, many people do not have a budget. Why do you think this is?

All of the following options are considered a "need" EXCEPT...

• Music streaming subscription

• Gas for your car

• Monthly health insurance premium

• Rent

All of the following options are considered "wants" EXCEPT...

• Electricity and gas

• New fall sweater

• Eating at your favorite local restaurant

• Netflix subscription

Which of the following statements about savings is TRUE?

• Saving is best for long-term goals only

• Setting aside money each month consistently will help you in the long run when future needs come up

• You should dedicate 20% of your income to computer upgrades each month

• Monthly expenses like utilities should be categorized under saving

Why is it helpful to track your spending for 2 months?

• You can receive higher interest rates for your savings account when you can show how you spend your money

• You can receive special discounts at certain stores when you can show how you spend your money

• To identify your spending patterns and then prioritize your needs, wants, and savings goals

• To eliminate all spending on your wants

Assume Bartlebee's monthly post-tax income is $2900. If he's using 50/30/20, how much money goes into each broad category? a. Necessities: b. Wants: c. Savings & Paying Off Debt:

• A. $1,450

  B. $870

  C. $580

• A. $580

  B. $870

  C. $1,450

• A. $870

  B. $1450

  C. $580

The following expenses would best fit into which category?

Health Insurance

Student Loans

Rent

Car Payments

• Fixed

• Variable

How might a high school student's budget categories and a college student's budget categories differ? What categories might be the same for both?

What is the core characteristic that defines a zero-based budget?