Budgeting Unit Review

Which of these statements is true about Needs vs Wants?

• Everyones wants and needs are the same.

• Needs and wants are irrelevant, and weighing them out won't help you budget.

• People's wants and needs differ from person to person.

• Wants are more important than needs.

What is Gross Pay?

• Total earnings before any deductions are taken.

• Total earnings after deductions are taken

• The value of deductions taken out

• None of these.

What is Net Pay?

• Total earnings before any deductions are taken.

• Total earnings after deductions are taken

• The value of deductions taken out

• None of these.

When we say "Pay yourself first" what does this imply?

• Getting a second job for extra money.

• Buying the things you want and need first before putting into your savings.

• Using all of your money to buy what you want.

• Putting some of your paycheck into your savings/retirement fund.

Which of these describes the difference between fixed and variable expenses?

• Fixed expenses constantly variable expenses stay the same.

• Fixed expenses stay the same while variable expenses constantly change.

• Fixed expenses are mostly the same but change occasionally, variable expenses never change

• None of these

You earn a salary of $50,000 per year and decide to save 10% of your gross pay. You set a goal of creating  a $15,000 emergency fund. How long will it take for you to achieve your goal?

• 6 months

• 1 year

• 2 years

• 3 years

The 50/30/20 rule says that you should use 50% for ____, 30% for ____, and 20% for ____.

• Wants, needs, savings

• Savings, needs, wants

• Needs, wants, savings

• Wants, savings, needs

Which budgeting stragety involves making sure every available dollar is accounted for?

• 50/30/20

• Zero-Based Budget

• Envelope Budgeting

• Pay Yourself First

All of these are reasons budgeting apps can help maintain a budget EXCEPT...

• You can connect your bank account to budgeting apps to make it easier to track your spending.

• Being able to see your spending on your phone makes for easier tracking.

• Some apps have the ability to follow a specific budgeting framework such as zero-based budget or the 50/30/20 rule.

• They physically close off access to your bank accounts if you are spending too much.

Which of the following is an example of buying something you NEED?

• "I want to replace something that is no longer working."

• "I want to impress someone/ change how they feel about me."

• "I'm feeling down, and I need to boost my spirits."

• "I don't want to miss out on these deals during the sale!"