Wilkins Personal Finance Quiz 3

_____________ is a personal asset.

• Cash
• Stocks
• Real estate
• Bonds

Which of the following refers to personal belongings which have value?

• assets
• investments
• expenses
• liabilities

Based on the 50/30/20 rule for allocating resources, which of the following percentages should be devoted to savings?

• 20%
• 50%
• 30%
• 10%

Select all of the following which are classifed as spending needs.

• Grocery bll

• Electricity bill

• Rent for a home

• Movie tickets

What is a variable expense?

• A variable expense is a fixed cost that remains the same each month.
• A variable expense is a cost that varies in amount and frequency.
• A variable expense is a one-time payment that does not recur.
• A variable expense is a cost that is always predictable and stable.

What is a fixed expense?

• A fixed expense changes monthly based on usage.
• A fixed expense is a cost that remains constant over time.
• A fixed expense varies with production levels.
• A fixed expense is a one-time payment only.

What is the 50/30/20 rule?

• A guideline for saving that recommends 50% for retirement, 30% for emergencies, and 20% for daily expenses.
• A budgeting rule that divides income into 50% needs, 30% wants, and 20% savings.
• A financial strategy that suggests spending 50% on entertainment, 30% on groceries, and 20% on travel.
• A savings plan that allocates 50% to investments, 30% to expenses, and 20% to debt repayment.

What is the most important thing about a personal budget?

• The most important thing about a personal budget is to ensure it aligns with your financial goals.
• A budget is only necessary for wealthy individuals.
• The most important aspect is to track every single expense.
• A personal budget should only focus on saving money.

How to determine a financial goal?

• Assess your finances, identify objectives, prioritize, and set SMART criteria.
• Choose a financial goal based on friends' suggestions.
• Ignore current expenses and focus only on future income.
• Set a random amount of money to save each month.

What is SMART?

• Specific, Measurable, Actionable, Relevant, Timed
• SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound.
• Specific, Measurable, Attainable, Realistic, Time-sensitive
• Simple, Manageable, Achievable, Relevant, Timely