Spring 2025 Final Exam Review

Abigail is reviewing her finances. Which of the following best describes her monthly expenses?

• The money you save each month

• The total amount you spend on bills and needs each month

• The total money you earn each month

• The amount you receive as a gift

Mia works at a restaurant and receives different amounts of money each week. Which of the following is an example of variable income?

• A monthly salary

• A rent payment

• Tips from a restaurant job

• A student loan

Sophia recently found out that her income has gone down. What should she do first in her budget?

• Add more expenses

• Reduce spending in some categories

• Increase savings

• Ignore the change

Emma is planning her monthly budget. Which of the following is a fixed expense she should include?

• Groceries

• Rent or mortgage

• Entertainment

• Gas for your car

Maya is reviewing her monthly spending. She observes that some of her expenses, such as dining out and transportation, are not consistent each month. These types of variable expenses are:

• Always the same every month

• Paid once a year

• Change from month to month

• Not included in a budget

Hannah finds that her total expenses each month are more than her income. What does Hannah have?

• A surplus

• A deficit

• A fixed budget

• A savings goal

Nora earns $2,000 each month and spends exactly $2,000 on her monthly expenses. What kind of budget does Nora have?

• Overspending the budget

• Balanced budget

• Irregular budget

• Deficit budget

Liam finds that he has extra money left over after covering all his monthly expenses. What should he do with his budget surplus?

• Spend the extra money on entertainment

• Increase your savings or pay off debt

• Add more fixed expenses

• Stop budgeting

Kai is creating a monthly budget and is considering whether to include a portion for savings. Why is it important for Kai to include savings in his budget?

• To increase expenses

• To prepare for emergencies or future goals

• To pay more taxes

• To make the budget unbalanced

Anika wants to improve her finances. What is a smart savings goal for her budget?

• Saving nothing and hoping for the best

• Saving a set amount or percentage each month

• Spending more than you save

• Only saving if there is money left