Budget Practice

Use the information to answer questions 1 and 2. Arturo earned $100 last month from his afternoon babysitting job. The table shows Arturo’s budget. Which is a true statement about Arturo’s budget?

• Arturo’s budget is not balanced because his expenses exceed his income.

• Arturo will have a surplus because he plans to spend less than he earned.

• Arturo’s budget is not balanced because he will spend all of his money.

• Arturo’s budget is balanced because his expenses equal his income.

Arturo has an opportunity to buy a video game from his friend for $18. How can Arturo BEST adjust his budget so that he can afford the game?

• Do not buy gum and trading cards.

• Do not buy lunch at school.

• Do not buy movie tickets and gum.

• Do not buy popcorn at the movies.

Carrie’s net pay is $2,500 each month. She plans to buy a home soon. Her monthly budget is shown except for the amount spent for a house payment. What is the largest house payment she can afford in order to have a balanced budget?

• $1,310

• $1,210

• $1,290

• $1,190

Sherwin earned $2,140 last month. His planned expenses exceed his income. Which action would BEST help Sherwin balance his budget?

• Do not pay the rent.

• Do not pay the water bill.

• Do not pay the electric bill.

• Do not eat at a restaurant.

Martina's checks for last month are shown in this table. At the end of the month, Martina was $15 overdrawn at the bank. Which action would BEST help Martina avoid being overdrawn again next month?

• Do not use any electricity for one month.

• Do not wash clothes in order to save water.

• Switch to a less expensive phone plan.

• Do not pay for home insurance until next month.

Leon listed some expenses from last month on this table. Which category does 'groceries' fall into on Leon’s T-chart?

• Necessities

• Luxuries

• Savings

• Investments

Destiny earned $1,500 last month. She planned her budget using this table. Does Destiny have a balanced budget?

• Yes

• No

• Cannot be determined

• Not enough information

Jenna has a monthly income of $2,000. She wants to save $300 each month. If her current expenses are $1,800, what should she do to meet her savings goal?

• Reduce her expenses by $100.

• Increase her income by $100.

• Reduce her expenses by $300.

• Increase her income by $300.

Michael's monthly budget includes $200 for entertainment. If he spends $250 on entertainment this month, what is the impact on his budget?

• He will have a $50 surplus.

• He will have a $50 deficit.

• His budget will remain balanced.

• He will have a $100 deficit.

Olivia plans to buy a new laptop costing $1,200. She has saved $800 so far. What is the minimum amount she needs to save each month for the next 4 months to afford the laptop?

• $100

• $200

• $300

• $400