TC2--MSU Adulting Budgeting: Income and Expenses Quiz

What is the primary purpose of creating a budget?

• To track only your spending

• To allocate your income toward various expenses and savings

• To monitor your friends' spending habits

• To avoid paying bills

Which of the following is considered a "need"?

• Concert tickets

• Designer clothing

• Groceries

• Streaming subscriptions

What is the first step in creating a budget?

• Estimate future expenses

• Track your income and expenses

• Decide on a savings goal

• Choose a budgeting app

What should you do if your expenses exceed your income?

• Ignore the situation and hope it improves

• Borrow money from friends

• Adjust your spending habits or find additional income sources

• Increase your credit card usage

Which expense is considered "fixed"?

• Grocery bills

• Entertainment subscriptions

• Rent or mortgage payments

• Clothing purchases

What is a "variable" expense?

• An expense that remains the same each month

• An expense that changes in amount each month

• An expense that is optional

• An expense that is not necessary

Why is it important to differentiate between needs and wants when budgeting?

• To spend more on wants

• To prioritize essential expenses over non-essential ones

• To avoid budgeting altogether

• To increase your spending

What is a recommended strategy if you have irregular income?

• Spend all your income when you receive it

• Save a portion of each income to cover future expenses

• Ignore budgeting

• Only budget during high-income months

Which of the following is a benefit of using a budgeting tool or app?

• It automatically increases your income

• It helps you track and manage your expenses

• It eliminates the need to save money

• It allows you to spend without limits

What is the "50/30/20 rule" in budgeting?

• Allocate 50% to wants, 30% to needs, and 20% to savings

• Allocate 50% to savings, 30% to needs, and 20% to wants

• Allocate 50% to debt repayment, 30% to savings, and 20% to needs

• Allocate 50% to needs, 30% to wants, and 20% to savings