Budgeting and Expenses Quiz

Which of the following is MOST LIKELY a fixed expense?

• dry cleaning bill

• new all-season tires

• mortgage/rent payment

• food for a camping trip

Which of the following is MOST LIKELY a variable expense?

• Car payment

• Rent payment

• Student loan payment

• Electric payment

Which of the following MOST ACCURATELY describes a budget deficit?

• the money left over after all expenses are paid

• expenses owed every month

• the difference between income and expenses

• not having enough money to cover expenses

If Shauna finds a budget deficit two weeks after creating her budget, which of the following is the best way for her to eliminate the deficit?

• get a new job

• review expenses and cut back

• stop paying rent to her parents

• stop putting money in savings

What is the term that refers to money that is left over after you have paid bills and set aside money for savings?

• discretionary income

• principal

• interest

• rate of return

Which of the following describes an effective filing system?

• easy to use

• logical

• easy to access

• all of the above

Which expense should take the largest portion of your budget?

• transportation

• entertainment

• housing

• miscellaneous

What is the recommended minimum percentage of a person’s paycheck that should go into savings?

• 20%

• 5%

• 15%

• 10%

Which of the following identifies gross income?

• take home pay

• wages before withholdings

• annual income

• money left after all the bills are paid

Which of the following identifies net income/net pay?

• take home pay

• wages before withholdings

• annual income

• money left after all the bills are paid