Budgeting

About how much of your income should go towards transportation?

• 5-10%

• 15-20%

• 25-30%

• 35-40%

Which of the following reasons would explain why Justin has decided not to own a car?

• He doesn't have access to public transportation

• He can walk or take public transportation because he lives in a big city

• Driving would reduce the time it takes to get to work by 30 minutes

• There are numerous car dealerships in his area

6 cans of tomato soup cost $14.99. What is the unit price?

• About $1.50

• About $2.50

• About $3

• About $3.50

Why is it important to have an emergency fund?

• To have money set aside for planned vacations

• To invest in long-term stocks

• To cover unexpected expenses without going into debt

• To pay for daily expenses

What does it mean to 'diversify your investments'?

• Investing all your money in a single stock

• Spreading your investments across various assets to reduce risk

• Switching your investments from stocks to bonds only

• Investing only in international markets

Which of the following is a fixed expense in a monthly budget?

• Groceries

• Rent/Housing

• Entertainment

• Dining out

How does inflation and shrinkflation affect your budget?

• Inflation has no impact on budgeting or spending habits.
• Inflation increases savings and reduces expenses.
• Inflation and shrinkflation reduce purchasing power and increase budget strain.
• Shrinkflation leads to higher quality products at lower prices.

Which of the following is NOT a cost of owning a car?

• License and Registration fees

• Gasoline

• Utilities

• Insurance

Jabar broke his leg while riding his bike. How does having health insurance help him?

• Jabar will likely have to pay $0 towards his medical costs

• Jabar will likely have to cover 100% of his medical costs

• Jabar will likely owe a portion of his medical costs but not all of it

• Having health insurance makes no difference

Which of the following would typically NOT be covered under renter's insurance?

• A friend slips and twists his ankle in your living room

• Your apartment is broken into and your laptop is stolen

• A fire destroys 80% of your belongings

• Your apartment is flooded, destroying your furniture