Budgeting

What is the primary benefit of creating an emergency fund?

• To increase monthly entertainment budget

• To cover unexpected expenses without going into debt

• To invest in high-risk stocks

• To pay off student loans faster

Jenna wants to decrease the amount of $ she spends on food. Which of the following would help?

• Decide what she will make for dinner that same day

• Go to the grocery store with a list

• Go to the store whenever she needs 1-2 items

• Eat at fast food restaurants multiple times a week

It's common to have all of the following expenses BEFORE signing a lease EXCEPT...

• Renter's Insurance

• Application fee

• Application deposit

• Apartment hunting expenses

How do wages and salary differ?

• Wages describe what you earn on an annual basis

• Salary describes what you earn on an annual basis

• Wages mean you have a standard amount in each paycheck

• Salaried employees are likely to be paid for overtime

A 18oz box of cereal costs $4.99. How would you calculate the unit price?

• 18oz / $4.99

• 9 oz / $2.50

• $4.99 / 18oz

• (18oz) x ($4.99)

Which of the following is a step you can take to mitigate the risk of buying a used car?

• Get a vehicle history report

• Have a mechanic inspect the car after you buy it

• Skip the test drive; you have time after you buy it to drive

• Buy a more expensive vehicle to ensure quality

Which budgeting approach is most likely to help someone who tends to overspend on impulse purchases?

• Tracking expenses after each purchase

• Using only cash for non-essential spending

• Automating all bill payments

• Reviewing expenses at the end of each month

In "pay yourself first" budgeting, what's typically the first action after getting paid?

• Pay your rent or mortgage

• Buy groceries for the week

• Transfer money to your savings account

• Pay off credit card balances

How does the 50/30/20 rule of thumb for budgeting allocate your income?

• 50% Needs, 30% Wants, 20% Savings & Debt Repayment

• 50% Wants, 30% Needs, 20% Savings & Debt Repayment

• 50% Savings & Debt Repayment, 30% Wants, 20% Needs

• 50% Needs, 30% Savings & Debt Repayment, 20% Wants

Which of the following might you pay WHEN you sign your lease?

• Finder's fee

• Application fee

• Security deposit

• Renter's insurance