Personal Finance Review

Examples of Fixed Expenses include:

• Mortgage, loans, rent
• Cable, entertainment, food
• Gas, food, phone
• Clothing, gas, food

A vacation is an example of a _________

• need
• want

How do wages and salary differ?

• Wages describe what you earn on an annual basis

• Salary describes what you earn on an annual basis

• Wages mean you have a standard amount in each paycheck

• Salaried employees are likely to be paid for overtime

Which of the following are TRUE about gross income?

• They are the same thing

• Gross income is the total amount earned AFTER deductions

• Gross income is the total amount earned BEFORE deductions

• Net income is the total amount earned BEFORE deductions

Which of the following is NOT a need?

• Food
• Clothes
• Netflix
• Shelther

Which of the following is an example of a variable expense

• Food
• Rent
• Car payment
• Student loan

Your emergency savings fund should have how many months worth of income?

• 1-2 months
• 10 months
• It doesn't matter
• 3-6 months

What is the first step in budgeting?

• Record what you spend
• Estimate your income
• Set financial goals
• Review and evaluate monthly

A plan for your estimated income, expenses, and savings.

• Credit Rating
• Budget
• Bankruptcy
• Financial Goals

What type expense does the following statement best match?

Expense that varies in dollar amount from month to month but that you can expect to have every month.

• Fixed

• Intermittent

• Variable

• Discretionary