Budgeting, banking, & Finance - Test Review

What is a checking account statement, and what kind of information does it show?

• A record of all transactions made during the previous month.

• A list of future transactions.

• A summary of your credit score.

• A detailed report of your investments.

If you use a debit card to withdraw money from an ATM, what happens to your checking account balance?

• It increases.

• It decreases.

• It stays the same.

• It doubles.

Why is it important to identify your needs versus your wants when budgeting?

• To make sure your needs are met first, and then you can decide how much to spend on wants.

• To ensure you spend equally on both.

• To avoid spending on needs.

• To focus only on wants.

Kylie uses the 50/30/20 rule. What percentage of her income should she save?

• 10%

• 20%

• 30%

• 50%

A checking account statement shows a record of all transactions made during the previous month. What is this an example of?

• A budget.

• A financial plan.

• A transaction history.

• A credit report.

Fill in the blank: A mobile wallet works by holding your smartphone next to the store’s ________ terminal.

• checkout

• ATM

• online

• credit

Why is it better to budget using your net pay instead of your gross pay?

• Net pay is the actual amount you have available to spend after deductions.

• Gross pay is the total amount you earn before any deductions.

• Net pay includes taxes and insurance.

• Gross pay is more reliable.

Why should you meet all your needs before spending on wants?

• Needs are essential for survival and responsibilities, while wants are optional.

• Wants are more expensive than needs.

• Needs can be postponed.

• Wants are more fun.

Ethan wants to upgrade to unlimited data for his cell phone. When might this be a need?

• If he has an hour-long bus ride and needs the data to do homework online.

• If he wants to watch movies.

• If he likes to play games.

• If he wants to browse social media.

Why do deductions like taxes matter when creating a budget?

• They increase your income

• They reduce your actual income

• They have no effect on your budget

• They are optional