Budgeting and Financial Literacy Quiz

Kelsie plans on using the 50/30/20 rule for budgeting. How will she split her budget?

• 50% needs, 30% wants, 20% savings

• 50% savings, 30% needs, 20% wants

• 50% wants, 30% savings, 20% needs

• 50% needs, 30% savings, 20% wants

Three of these items represent services provided by the federal government using taxpayer money. Which one represents a personal expense instead?

• Car Insurance

• National Defense

• National Parks Maintenance

• Social Security Payments

Who has to pay taxes to the United States government?

• Only people with full time jobs

• Every adult 18 years or older

• Every person and company that earns income in the United States

• Only Fortune 500 companies

The federal government budgets its tax money on three large categories of expenses. These are...

• Defense, Social Security, and Education

• Healthcare, Infrastructure, and Defense

• Social Security, Healthcare, and Defense

• Mandatory Spending, Discretionary Spending and Interest on Debt

Should you use gross pay or net pay when creating a budget?

• Net pay
• Gross pay

• Neither, you have to add taxes to gross pay when creating a budget

• Both

Abby receives her paycheck and the paystub says that her gross pay is $400 and her net pay is $325. How much money did she have in deductions this pay period?

• $400

• $325

• $75

• $25

George's part-time job pays $17 an hour. He works for 10 hours a week. How much is George's weekly gross pay?

• $1,700

• $170

• $17

• $10

What question should you ask yourself when deciding if an item is a want or need?

• Is this item essential for survival?

• Do I want this item because others have it?

• Is this item popular on social media right now?

• Do my friends think this item is cool?

Andrew's friends tell him that an unlimited cell phone plan is not a need, but a want. When would an unlimited cell phone plan be considered a need?

• When Andrew uses his phone for work and needs constant connectivity.

• When Andrew wants to stream videos without worrying about data limits.

• When Andrew's friends also have unlimited plans.

• When Andrew needs to check his social media accounts all throughout the day to see how many people like his posts.

Which statement is most accurate? When you budget, you should make sure all your needs are met first, then you can decide to spend on wants.

• True

• False