Budgeting 2024

1. When creating a budget, which list below portrays expense categories in the most responsible order?

• All of your needs, high priority wants, low priority wants, savings
• All of your needs, savings, high priority wants, low priority wants
• All of your needs, high priority wants, savings, low priority wants
• Savings, high priority wants, low priority wants, all of your needs

2. What does it mean to "pay yourself first?"

• Set aside some fun money in each month's budget so you can enjoy yourself
• Auto-deposit a set amount of money into savings after each paycheck so that you don't spend all your income
• Be self-employed, so that you don't have a boss and get to keep all income from your business for yourself
• Do all of your budgeting at the beginning of the month, rather than at the end

3. What is the purpose of an apartment lease?

• It provides the budget you'll use for all of your household expenses
• It outlines the amount of rent you'll pay, when it is due, and key obligations and rights of living in the property
• It provides insurance if any guests to your apartment are injured on the property
• It makes it illegal for your landlord to evict you from the property

4. Which scenario below is an example of a person whose car payment is probably too high?

• Chester pays $390 per month for his car and saves $500 per month
• Amal pays $430 per month for her car and saves $500 per month
• Logan pays $250 per month for his car and saves $250 per month
• Isra pays $400 per month for her car and saves $350 per month

5. Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Dining out at local restaurants
• Loan payment on a new car
• Expenses for new clothes
• Postponing a purchase for a big-screen TV

6. If you are trying to substantially reduce the amount you spend on food, you should try...

• Cooking your own food at home for as many meals as possible
• Dining at restaurants more often so you don't waste water doing dishes
• Eating more snacks on the go and way fewer meals at home
• Drinking more coffee and soda so you are not as hungry for food

7. Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

• Average rent for an apartment
• Food and grocery store options in the area
• Employment opportunities
• Average cost of Uber, Lyft, or taxi fare

8. Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?

• There are several public transportation routes between Greg's apartment and work
• The cost of public transportation is less than Greg’s monthly car payment
• Greg’s company covers half the cost of his monthly public transportation pass
• Using public transportation, Greg’s commute to work one-way is two hours

9. Which of these boxes of cereal has the LOWEST unit price?

• Cereal A, which costs $3.20 for a 16 oz. box
• Cereal B, which costs $5.00 for a 32 oz. box
• Cereal C, which costs $2.50 for a 10 oz. box
• Cereal D, which costs $4.50 for an 8 oz box

10. Which description is most accurate for a Zero-Based Budget?

• You put every dollar of your net pay into a budget category each month
• You spend your checking account balance down to $0 every month
• You spend your saving account balance down to $0 every month
• You pay every one of your debts down to $0 every month