Budgeting Basics

According to a 2024 Bankrate survey, what percentage of U.S. adults do not use a budget to manage their money?

• 44%

• 32%

• 17%

• 59%

Which of the following statements about the 50/30/20 budgeting rule is true?

• It recommends spending 50% of income on savings.

• It was created by Warren Buffett as a wealth-building strategy.

• It's based on after-tax income, not gross income.

• It allocates 30% of income to fixed expenses like rent and insurance.

According to the National Endowment for Financial Education (NEFE), what percentage of U.S. adults say they feel anxious when thinking about their personal finances?

• 22%

• 37%

• 60%

• 72%

Which of the following categories tends to take up the largest share of spending for the average U.S. household, according to 2023 Bureau of Labor Statistics data?

• Transportation

• Food

• Housing

• Healthcare

What’s a key risk of using “pay yourself first” as a savings strategy without a budget?

• It assumes you’ll always save more than you spend.

• It can lead to underfunding fixed expenses like rent.

• It encourages overspending on credit cards.

• It eliminates the need to track income.

Which of the following best reflects the average U.S. household credit card balance in 2024, according to the Federal Reserve?

• $2,450

• $5,910

• $7,920

• $9,385

If a student earns $600 a month from a part-time job and follows the 50/30/20 rule, how much should be allocated to wants each month?

• $90

• $120

• $300

• $180