Chapter 2 Personal Finance Quiz

Although the majority of Americans think budgeting is important, about _______ of Americans actually use a budget.

• 75%

• 50%

• 23%

• 35%

Which of the following is NOT a component of a budget?

• Credit score

• Saving

• Income

• Giving

What are the Four Walls?

• Utilities, college fund, restaurants, and car insurance

• Cell phone bill, car insurance, shelter, and money for the movies

• Food, utilities, transportation, and college fund

• Food, utilities, shelter, and transportation

How many categories should you have in your budget?

• 15 or more

• No limit; use as many as you need to keep your budget accurate!

• No more than 10

• At least 3

How often should you create a budget?

• Daily

• Weekly

• Monthly

• Biannually

A budget says what will happen with your money, while a cash-flow statement shows what already happened.

• True

• False

How many months does it usually take for your budget to start working as a budget should?

• Three

• Four

• Five

• One

Net income is the amount you get paid before taxes.

• True

• False

What kind of money counts as income?

• Only the money you make at your job

• All money that you receive, including money from your job and gifts like birthday money

• Money in your savings account

• Only money deposited into your bank account

The first priority in your budget should be _______.

• Giving

• Spending

• Saving

• Investing