Budgeting - Unit Test

First Name:

Last Name:

Hour/Class:

2. 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 for you to achieve your goal?

• 6 months
• 1 year
• 2 years
• 3 years

3. 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

4. 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 rent for an apartment
• Food and grocery store options in the area
• Employment opportunities
• Average cost of Uber, Lyft, or taxi fare

5. Troy lives in the city and wants to reduce his transportation costs. All of the following steps will help him cut back on his expenses, EXCEPT…

• Using public transportation when visiting friends in the city
• Commuting to work with a colleague
• Biking to the volunteer center he goes to once a week
• Buy a car that gets fewer miles per gallon

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

• Cereal A, which costs $3.20 for a 16 oz. box
• Cereal B, which costs $5.00 for a 32 oz. box
• Cereal C, which costs $2.50 for a 10 oz. box
• Cereal D, which costs $4.50 for an 8 oz box

7. 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 $2,500 and net pay is $3,000
• His gross and net pay are $3,000
• His gross and net pay are $2,500
• His gross pay is $3,000 and net pay is $2,500

8. 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 surplus of $125
• You have a deficit of $125
• You have a deficit of $2,625
• You have a surplus of $2,500