Budgeting Review Quiz

1. Which of the following is MOST LIKELY a fixed expense?

• 1. dry cleaning bill

• mortgage/rent payment

• new all-season tires

1. Which of the following is MOST LIKELY a variable expense?

• 1. Rent payment

• Electric payment

• Student loan payment

1. Which of the following MOST ACCURATELY describes a budget deficit?

• 1. the money left over after all expenses are paid

• not having enough money to cover expenses

• the difference between income and expenses

What is the term that refers to money that is left over after you have paid bills and set aside money for savings?

• discretionary income

• principal

• interest

Which of the following describes an effective filing system?

• easy to use

• logical

• easy to access

• all of the above

What is the recommended minimum percentage of a person’s paycheck that should go into savings?

• 20%

• 15%

• 10%

1. Which of the following identifies gross income?

• money left after all the bills are paid

• annual income

• wages before withholdings

Which of the following identifies net income/net pay?

• money left after all the bills are paid

• annual income

• take home pay

1. Which expense should take the largest portion of your budget?

• 1. transportation

• housing

• entertainment

Your Gross Pay is: $1500.00

Your Deductions are the following:

Federal Tax: $175.00

State Tax: $60.00

Social Security: 90.00

Health Care Insurance: $100.00

Savings: $150.00

What is the net income?

• $925.00

• $1075.00

• $1025.00