Budget Boss

What is the 50/30/20 rule in budgeting?

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

• 40% for needs, 40% for wants, 20% for savings

• 60% for wants, 20% for needs, 20% for savings

• 50% for needs, 30% for wants, and 20% for savings

How can the envelope system help with budgeting?

• It encourages spending more on non-essential items.

• It allocates cash to specific categories, promoting discipline and visual tracking.

• It allows for unlimited spending without consequences.

• It eliminates the need for tracking expenses altogether.

What are fixed costs? Choose the right variant.

• Cost of raw materials

• Rent for office space

• Advertising expenses for a campaign

• Utility bills for the office

What are variable costs? Provide two examples.

• Overhead costs such as utilities and insurance

• Raw materials and direct labor costs

• Depreciation costs on equipment and machinery

• Fixed costs like rent and salaries

Which of the following is commonly used as a symbol for saving money, especially small amounts over time?

• Wallet

• Piggy Bank

• Credit Card

• Safe

What does the meaning of "profit" generally in business?

• The total amount of money a business earns before expenses are deducted

• The money remaining after all expenses are subtracted from revenue

• The total value of all goods sold by a business

• The amount of money invested in a business

What is the correct definition of Cash Flow?

• The amount of money saved in a piggy bank for future expenses.

• The total income earned from a job over a year.

• The movement of money in and out of a business or individual's finances over a specific period.

• The percentage of income allocated to entertainment and leisure activities.

What does the method "Pay Yourself First" mean in personal finance?

• Paying all your bills before considering any savings.

• Prioritizing discretionary spending before fixed expenses.

• Prioritizing savings and investments before spending on anything else.

• Using your income to pay for leisure activities first to ensure enjoyment.

Which of the following best defines an Expense?

• The total amount of money earned over a specific period.

• The portion of income saved or invested for future use.

• The process of allocating income into categories such as savings, needs, and wants.

• The money spent on goods, services, or other costs to meet needs and wants.

What is the best definition of a Budget?

• A plan for how to allocate income among savings, expenses, and investments over a specific period.

• The total amount of money saved for future goals.

• The unexpected costs that arise during a financial period.

• A tool used to track past spending habits without setting financial goals.