Personal Budget Study Guide

Which of the following is an itemized summary of the expected income and expenses for a defined period of time?

• Net worth

• Balance sheet

• Budget

• Equity

Which of the following is an expense which stays relatively the same from month to month, such as a car payment or rent?

• Fixed expense

• Variable expense

• Estimated expense

• Equity expenses

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

• Rent

• Entertainment

• Car payment

• Electricity

Which of the following money personalities is described as a person who enjoys spending their money either on themselves or others rather than saving it?

• Saver

• Spender

• Security seeker

• Flyer

Which of the following is NOT a common budgeting strategy?

• Ensuring expenses are greater than income

• Separating needs from wants

• Creating a savings plan

• Establishing an emergency fund

Which of the following is the sum of the individual’s current assets minus the individual’s total liabilities?

• Variable expenses

• Liquid assets

• Net worth

• Budget

Which of the following are goals which can be achieved in less than a year of time?

• Short-term goals

• Intermediate-term goals

• Long-term goals

• Lifetime goals

Which of the following correctly defines the “M” in the goal setting acronym SMART?

• Maintainable

• Manageable

• Measurable

• Malleable

Which of the following is NOT classified as a spending need?

• Movie tickets

• Rent for a home

• Grocery bill

• Electricity bill

Based on the 50/30/20 rule for allocating resources, which of the following percentages should be devoted to savings?

• 50

• 30

• 20

• 0