Gen. Business Budgeting Quiz

What is the first step in creating a budget?

• Start saving money

• Identify your income and expenses

• Pay off debt

• Invest in stocks

Fixed expenses are:

• Costs that change month-to-month

• Costs that stay the same every month

• Costs associated with entertainment

• Costs that depend on income levels

Which of the following is a variable expense?

• Rent

• Insurance

• Utilities

• Mortgage payments

If your income is $3,000 and your expenses are $2,500, how much money is left over?

• $200

• $400

• $500

• $600

What percentage of your income should ideally go towards savings?

• 10%

• 20%

• 30%

• 40%

Why is tracking expenses important in budgeting?

• To calculate taxes

• To understand where your money goes

• To increase your credit score

• To impress your employer

If your monthly grocery bill is $400, how much will you spend on groceries in a year?

• $3,600

• $4,200

• $4,800

• $5,000

A need is:

• Something essential for survival

• A luxury item

• A non-essential purchase

• Something you want to have

If your rent is $1,200 and your total income is $4,000, what percentage of your income goes to rent?

• 20%

• 25%

• 30%

• 35%

Which tool can help you manage your budget?

• A budgeting app

• A video game

• A novel

• A social media platform