Understanding Wants, Needs and Budgeting Concepts

Which of the following is a fixed expense?

• Gas

• Rent

• Coffee

• Groceries

In the 50/30/20 Rule, what percent is typically allocated to wants?

• 20%

• 30%

• 50%

• 70%

Which budgeting method gives every dollar a specific job until no money is left “unplanned”?

• Priority-Based

• Automated Budget

• Zero-Based Budget

• Pay Yourself First

Which of the following would be considered a want rather than a need?

• Rent

• Insurance

• Subscription Services

• Groceries

What is the main advantage of the Cash Stuffing Method?

• • A. Works automatically in the background

• • B. Helps prevent overspending by using envelopes

• • C. Assigns every dollar a job

• • D. Encourages saving first

If you had a million dollars, which of the following would BEST reflect a “big money dream”?

• • A. Buying groceries

• • B. Paying off debt

• C. Buying a luxury home

• • D. Saving for a small trip

Which of these meals would NOT meet the Choice Board Test requirements?

• • A. Chicken Alfredo with broccoli

• • B. Taco Night with beef, cheese, and lettuce

• C. Canned Spaghetti-Os

• • D. Homemade pizza with pepperoni

In the “Pay Yourself First” method, you save or invest a portion of your paycheck before spending anything else.

• True

• False

Eating out is always considered a “need” in budgeting.

• True

• False

In the Choice Board Test, salads can be counted as the main entrée.

• True

• False