Unit 5: Budgeting & Saving

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Loan payment on a new car

• Dining out at local restaurants

• Expenses for new clothes

• Postponing a purchase for a big-screen TV

For most Americans, which budget expense category is largest?

• Housing

• Food

• Transportation

• Clothes

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take you to achieve your goal?

• 2 years

• 6 months

• 1 year

• 3 years

If you are trying to substantially reduce the amount you spend on food, you should try...

• Cooking your own food at home for as many meals as possible

• Dining at restaurants more often so you don't waste water doing dishes

• Eating more snacks on the go and way fewer meals at home

• Drinking more coffee and soda so you are not as hungry for food

Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

• Average cost of Uber, Lyft, or taxi fare

• Average rent for an apartment

• Food and grocery store options in the area

• Employment opportunities

Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?

• Using public transportation, Greg’s commute to work one-way is two hours

• Greg’s company covers half the cost of his monthly public transportation pass

• The cost of public transportation is less than Greg’s monthly car payment

• There are several public transportation routes between Greg's apartment and work

Which of these boxes of cereal has the LOWEST unit price?

• Cereal B, which costs $5.00 for a 32 oz. box

• Cereal A, which costs $3.20 for a 16 oz. box

• Cereal C, which costs $2.50 for a 10 oz. box

• Cereal D, which costs $4.50 for an 8 oz box

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

• His gross pay is $3,000 and net pay is $2,500

• His gross and net pay are $2,500

• His gross and net pay are $3,000

• His gross pay is $2,500 and net pay is $3,000

You are putting together your first post-graduation budget. Your net pay is $2,500 per month and you estimate that your monthly expenses will be $2,625. How would you describe your budget?

• You have a deficit of $125

• You have a surplus of $125

• You have a deficit of $2,625

• You have a surplus of $2,500

You are interested in renting an apartment after graduating college. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT:

• A bank account

• Proof of employment

• First and last month's rent

• A security deposit