Budgeting, Money, Pay Day Review

What is considered a necessity for financial well-being?

• Winning the lottery

• Inheriting money

• Creating a financial plan

• Becoming famous

What is the implication about relying on winning the lottery or inheriting money for financial planning?

• It is a reliable plan

• It is recommended by financial advisors

• It is not considered a plan

• It guarantees financial success

How much more on average do those with college degrees earn compared to those without?

• 10%-50% more

• 40%-160% more

• 20%-80% more

• 60%-200% more

What is a personal budget?

• A) A list of personal items to purchase.

• B) A projection of income and a plan to use that income to pay estimated expenses and debt payments, and to apply remaining incomes to savings and investments.

• C) A record of past financial transactions.

• D) A government plan for national spending and saving.

What is the main purpose of a personal budget?

• A) To increase personal debt.

• B) To manage investments only.

• C) To help you manage money.

• D) To calculate taxes.

Which type of expenses remain constant over a period of time?

• A) Variable expenses

• B) Discretionary expenses

• C) Fixed expenses

• D) Unexpected expenses

Which of the following is an example of a variable expense?

• A) Rent

• B) Mortgages

• C) Electric bill

• D) Health Insurance

What are discretionary expenses?

• A) Expenses that are essential for living.

• B) Expenses that are unexpected and occur without warning.

• C) Expenses that are wants rather than needs, like concerts and sporting events.

• D) Expenses that remain the same every month.

What might you have to do if your expenses are higher than expected for the month?

• Borrow money from a friend

• Reduce your expenses for the next month

• Dip into your savings to pay your bills

• Increase your income immediately

How is personal net worth calculated?

• Assets + Liabilities

• Assets - Debts

• Assets - Liabilities

• Liabilities - Assets