Chapter 2 Budgeting Basics

Although the majority of Americans think budgeting is important, about of Americans actually use a budget.

• 75%
• 50%
• 23%
• 35%

Which of the following is NOT a component of a budget?

• Credit score
• Saving
• Income
• Giving

Online budgeting apps are more effective than budgeting with pen and paper.

• True
• False

What are the Four Walls?

• Utilities, college fund, restaurants, and car insurance
• Cell phone bill, car insurance, shelter, and money for the movies
• Food, utilities, transportation, and college fund
• Food, utilities, shelter, and transportation

How many categories should you have in your budget?

• 15 or more
• No limit; use as many as you need to keep your budget accurate!
• No more than 10
• At least 3

How often should you create a budget?

• Daily
• Weekly
• Monthly
• Biannually

If you get married, only one person is responsible for budgeting.

• True
• False

What does a budget show you?

• How much you need to save
• How much money you plan to come in and go out during the month
• How much money you need to earn
• How much money you spent last month

Detailed categories on your budget will help you make better spending decisions.

• True
• False

A budget says what will happen with your money, while a cash-flow statement shows what already happened.

• True
• False