Budgeting Review

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

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

You're considering moving into a 4-bedroom apartment with 3 roommates rather than living on your own post-college. Which of your expenses would likely DECREASE by having roommates?

• Renters insurance

• Cell phone bill

• Internet bill

• Student loan payment

Which description is most accurate for a Zero-Based Budget?

• You put every dollar of your take-home pay into a budget category each month

• You spend your checking account balance down to $0 every month

• You spend your saving account balance down to $0 every month

• You pay every one of your debts down to $0 every month

Which of these expenses most likely represents a VARIABLE (changes month to month) cost in someone's budget?

• Electricity bill

• Rent

• Car insurance premium

• Student loan payment

What action corresponds to the advice "Pay yourself first"?

• Wait until the end of the month to determine how much you have leftover to save

• Set aside a fraction of your paycheck into a savings account before you start spending

• Spend your regular paycheck on needs and wants but funnel any extra money into saving

• Become self-employed so you're paying yourself instead of being paid by an employer

Some people experience great success when using budgeting apps to help them meet their goals. Why might this be the case?

• The app store guarantees you'll save money -- if you don't, they'll refund your money

• Because users carry their phones almost everywhere, budgeting becomes fast and convenient

• Lies, these apps don't work at all for no one

• Most budgeting apps deposit extra funds into your account on a quarterly basis

While NEEDS and WANTS can vary greatly depending on the individual and their situation, which of these items would most people agree to be a NEED?

• Safe, reliable childcare for a single parent so they can go to work

• A new cell phone every two years for a college student so they can keep in touch with family

• Stylish clothes for a teenager so that they fit in with popular kids at school

• Three weeks of vacation for a corporate executive so they can unwind from work

Month after month, Jessica is overspending in her budget and decreasing her savings account balance as a result. Which action would you recommend she take immediately?

• Write a new lease so she is paying 25% less in rent each month

• Stop paying her credit card bill and put the money into savings

• Start packing her lunch from home every day instead of dining out

• Quit her job so she can look for one that pays more

Which location is likely to have the HIGHEST cost of living?

• A rural area with a population of 6000 people

• A college town located 5 hours from the nearest big city

• A city thats crime rate is high and population has decreased in the last 3 months

• A thriving city with a growing health care sector, pro sports teams, and good public transportation

If Linus is following a 50/30/20 Budget and takes home $1000 per pay period, how much is he budgeting for his WANTS?

• $500

• $300

• $200

• $1000