Budgeting Basics Quiz

What is a budget?

• A plan for managing income and expenses

• A type of bank account

• A financial penalty

• A government tax

What is a budget?

• A plan for how you spend your money.

• A tool for cooking.

• A type of exercise.

• A method for cleaning.

What does a budget consist of?

• Income and Savings

• Income and Expenses

• Expenses and Investments

• Savings and Investments

What is an example of income?

• Groceries

• Entertainment

• Paycheck

• Rent

What does income represent in a budget?

• Money spent

• Money saved

• Money earned

• Money borrowed

What does expenses represent in a budget?

• Money earned

• Money saved

• Money spent

• Money borrowed

Which of the following is NOT considered an expense?

• Entertainment

• Paycheck

• Groceries

• Rent

What are fixed expenses?

• Expenses that vary every month

• Expenses with fixed amounts every month

• Expenses that occur annually

• Expenses that are optional

Which of the following is an example of a fixed expense?

• Groceries

• Gifts

• Rent

• Entertainment

What are variable expenses?

• Expenses with fixed amounts every month

• Expenses that vary every month

• Expenses that are paid annually

• Expenses that are unnecessary