Budget Test

Short - term goals are:

• a) hard to reach

• b) accomplished in less than a year

• c) personal

• d) categorized by wants and needs

The amount of earnings made over one month, after deductions, is known as :

• a) Total annual income

• b) Net monthly income

• c) Gross monthly income

• d) Gross annual income

A record of income and expenditures for a given period of time is called a/an:

• a) Credit

• b) Investment

• c) Budget

• d) Interest

When budgeting, the first categories to consider are those that meet your:

• a) Wants

• b) Needs

• c) Discretionary funds

• d) Important expenses

In what category of typical family budget do people spend most of their money?

• a) Food

• b) Housing

• c) Transportation

• d) Entertainment

What is the diffenence between a short term-goal and a long - term goal?

Jason went to the grocery store to buy a gallon of milk for his mother. While waiting in the checkout line, he saw a display for a new chocolate-caramel candy bar, so he bought it, too. The candy bar purchase is an example of a/an:

• a) Special treat

• b) Impulse buy

• c) Need

• d) Payment for running an errand for his mom

What is the difference between NMI (net monthly income) and discretionary funds?

What is PYF ? (Make sure you put what PYF stands for and the defnition)

What does it mean to follow a budget?

• Not having a spending plan that will not help a person to manage expenses and work towards both short-term and long -term goals through regular savings

• Having a spending plan that helps a person manage expenses and work towards both short-term and long-term goals through regular savings