Budgeting Vocabulary Quiz

What is the 50/30/20 Budget method?

• A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment

• A budgeting method that allocates 50% to savings, 30% to needs, and 20% to wants

• A budgeting method that allocates 50% to wants, 30% to savings, and 20% to needs

• A budgeting method that allocates 50% to debt repayment, 30% to needs, and 20% to wants

What is a Cash Envelope Budget?

• A budgeting method where money is saved in a bank account

• A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories

• A budgeting method where money is invested in stocks

• A budgeting method where money is only used for emergencies

What does the term "Deficit" mean in budgeting?

• When your income exceeds your expenses

• When your expenses exceed your income

• When your income and expenses are equal

• When you have no expenses

What is a Down Payment?

• A portion of the total cost of an item that must be paid at the time of purchase

• The total cost of an item paid over time

• A monthly payment for an item

• A payment made after the purchase of an item

What is a Fixed Expense?

• A cost that can be expected at regular intervals and that remains the same amount

• A cost that varies every month

• A one-time expense

• An unexpected expense

What is Gross Pay?

• Total earnings after all deductions are taken

• Total earnings before any deductions are taken

• Total earnings including bonuses

• Total earnings after taxes

What is the term for the lowest income necessary for a worker to meet their basic needs?

• Low Income

• Net Pay

• Living Wage

• Utilities

What does "Low Income" mean?

• Having a high salary

• Not having or earning much money

• Expenses that are essential for living

• Total earnings after deductions

What are "Needs" according to the learning material?

• Total earnings after payroll taxes

• The lowest income necessary for a worker

• Expenses that are essential for you to be able to live and function

• A strategy to save a specified amount of your paycheck

What is "Net Pay"?

• The lowest income necessary for a worker

• Total earnings after payroll taxes and other deductions have been taken out

• A strategy to save a specified amount of your paycheck

• The basic services your home needs