Budgeting Quiz

Put the words in order with the definitions.

1. Things that are absolutely necessary 2. Things that are enjoyed but not essential 3. Amount of money set aside for future expenses 4. Total of all money earned in a given period of time 5. Tool that helps a person use every dollar wisely

Budget _____ Income _____ Needs _____ Savings _____ Wants _____

What is the most important reason to have a budget?

• To have enough money to spend on wants

• To never need to save money for the future

• To be prepared to achieve financial goals

• To have enough money to retire early

What is the name of a rule that a person can use to help determine what should be planned for needs, wants, and savings?

• 10% Rule

• 50-30-20 Rule

• Rule of 72

• 30-day Rule

Which of the following is an example of a “want” category in your budget?

• House payments

• Groceries

• Medical bills

• Going out with friends

What is a budget?

• A financial reward

• A spending spree

• A plan for spending and saving money

• A tax refund

Tracking your current spending habits is a key step to budgeting success.

• True

• False

Which expense should go into a budget first?

• gym membership

• pet food

• gas for the car

• bills

What is a potential consequence of overspending?

• Winning the lottery

• Having a good time

• Going into debt

• Nothing

Overdrawing your checking account has the following consequence.

• Overdraft fee

• Bounced check fee from the store

• Both

• None

Which of the following are examples of a fixed expense?

• Rent, car payment, entertainment and student loan payment.

• Rent, car payment, daycare and student loan payment.

• Rent, fuel, gym membership and student loan payment

• All of the above.

• None of the above.