Budgeting Quiz

What is the 50-30-20 budgeting rule?

• 50% to savings, 30% to needs, 20% to wants

• 50% to needs, 30% to wants, 20% to savings

• 50% to wants, 30% to savings, 20% to needs

• 50% to needs, 30% to savings, 20% to wants

How can you determine your average monthly income if your income varies each month?

• By taking the highest income month and using that as the average

• By adding up your income for three months and dividing by three

• By estimating based on your expenses

• By using the income from the previous year

Which of the following is a method to increase your income?

• Reducing your work hours

• Selling some of your old stuff

• Ignoring your expenses

• Taking a long vacation

How often is it recommended to review your budget?

• Once a year

• Once a month

• Every six months

• Every week

What is the first step in creating a budget according to the document?

• Set financial goals

• Record your income

• List your expenses

• Save money

Which of the following is considered a fixed expense?

• Groceries

• Eating out

• Rent

• Entertainment

What should you do after totaling up your income and expenses?

• Spend more money

• Ignore your budget

• Set realistic financial goals

• Increase your expenses

What is one method suggested for tracking your spending?

• Ignoring your expenses

• Using a budgeting app

• Spending without limits

• Avoiding receipts

Why is it important to review your budget regularly?

• To increase spending

• To ignore financial changes

• To check progress and make adjustments

• To avoid setting goals

What does the 'S' in S.M.A.R.T. goals stand for?

• Simple

• Specific

• Standard

• Secure