Unit 3 Test - Budgeting

First Name

Last Name

1) Creating a budget can make you feel powerful! Why?

• People who budget earn more money, so they can live a better life
• A budget puts you in control of your spending and saving, so you make good decisions and feel more confident
• Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things

2) Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...

• Cell phone plan
• Rent
• Clothing

3) The two main portions of a budget are...

• the money coming in (income) and the money you're spending (expenses)
• the money coming in (expenses) and the money you're spending (income)
• the cash you are spending in stores and the bills you are paying online

4) Why is it important to be able to decide if an item is a NEED or a WANT?

• Needs are worth spending money on, but you should never spend on a want
• Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them
• When you budget, you should make sure all your needs are met first, then you can decide to spend on wants

5) Ethan is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Ethan?

• Unlimited data will allow him to play video games with his friends even when he's not at home, and he LOVES video games
• He has so many social media accounts, and he needs to be able to check them throughout the day, even while in school
• He has an hour-long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online

6) Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

• Will something bad happen if I don't have this item?
• Do any of my friends have this item?
• How happy will this item make me?

7) Justine's part-time job pays her $8 per hour. She works for 10 hours this pay period. How much is her gross pay?

• $8
• $80
• $80, minus any taxes she has to pay

8) Brandon receives his paycheck, and it says his gross pay is $250 and his net pay is $200. How much money did he have in deductions this pay period?

• $50
• $200
• $250