Budgeting Practice Quiz

Which of these is an example of a fixed expense?

• The junk food Preston buys almost every day and doesn't share with the rest of us

• The gas you fill up your car with every week

• The groceries you buy every month

• The insurance premiums you pay every month

Your apartment rent, tickets to a concert, a pepperoni pizza, and your cell phone bill are all examples of…

• Wants

• Needs

• Income

• Expenses

Which of the following items has the lowest unit price?

• A 19 oz box of brand-name cereal for $3.99

• A 21.6 oz box of generic cereal for $2.93

• A 29.4 oz box of brand-name cereal for $4.99

• A 39 oz bag of generic cereal for $4.68

On the first day of every month, Aaron sits down at his computer, builds a spreadsheet, and allocates all of his income toward expenses or saving. There’s no dollar that is unaccounted for in his budget. Which strategy is Aaron using?

• Cash envelope system

• 50/30/20 budgeting

• Zero-based budgeting

• Expense management

When making your budget, you realize that you will not earn enough money to cover all of your expenses. All of the following are suggested ways of balancing your budget, EXCEPT...

• Getting a roommate to share housing expenses

• Borrowing money from Big Johnny's Bank every month to make up the difference

• Spending less on food by eating out less and buying in bulk

• Reducing transportation costs by using public transportation instead of owning a car

Which piece of advice about budgeting for variable expenses is most useful?

• Aim to reduce your variable expenses to $0 on your budget because they are always “wants”

• Track your variable expenses for a few months to find your average monthly costs

• Do NOT budget for variable expenses, since they only make 5% of total spending on average

• Focus on budgeting for fixed expenses because they are easier to change

Which of these statements accurately describes fixed expenses in a budget?

• They are often hard to change and they usually make a small impact on your budget

• They are often easy to change and they usually make a small impact on your budget

• They are often hard to change and they usually make a large impact on your budget

• They are often easy to change and they usually make a large impact on your budget

Which of these expenses is typically the largest single expense for American households?

• Feeding teenagers that are hyped up on energy drinks everyday because they are trying to explode their hearts and the subsequent medical fees

• Housing

• Insurance

• Transportation

A household is defined as housing-burdened if their housing costs are greater than...

• 20% of their income

• 30% of their income

• 40% of their income

• 50% of their income

All of the following are benefits of hourly work, EXCEPT...

• Opportunities for overtime and holiday pay

• Consistent paycheck

• Some control over scheduling and work hours

• Opportunity to pursue other jobs and interests