Budgeting Assessment

The primary reason for giving a child an allowance should be to

• pay the child for work around the house.

• teach the child about how to manage money.

• encourage the child to get a job at an early age.

• have a way to withhold a privilege in order to control the child’s behavior.

Which of the following is the best advice for people who want to start saving regularly?

• Fools and their money are soon parted.

• Pay yourself first.

• Marry in haste, respect at leisure.

• There's no fool like an old fool.

Which of the following is a consequence of overdrawing your checking account?

• Bounced check fee from the store

• Stress from money mismanagemen

• Overdraft fee from your bank

• All of the above

Doing a budget does not:

• Show if you are overspending in one area

• Make overspending more likely

• Remove guilt and shame sometimes associated with a purchase

• Make your money go further

Which of the following is a good habit of a wealthy person?

• Leasing a new car

• Spending less money than he or she makes

• Replacing things that are not broken

• Carrying debt

A written budget, if followed, removes ___________ from your finances.

• Overspending

• Guilt

• Management by Crisis

• All of the above

The following are guidelines for budgeting except:

• Prioritize

• List all expenses for the month

• Consider how much income you have

• Spend all of your money right away

Percentage of Americans living paycheck to paycheck:

• 40

• 60

• 80

• 90

The zero-based budget is the best method of budgeting because:

• This type of budget is less complicated than other types of budgets

• A zero-based budget allows less money for wants

• Sticking to a zero-based budget requires less discipline

• The zero-based budget ensures that every dollar you make is assigned a specific purpose

Which of the following is a record-keeping feature you could expect from your bank?

• An account register

• A monthly account statement

• Customer service reconciles your account for you