Personal Finance: Budgeting and Managing Your Money Quiz

What does "income" refer to in the context of budgeting?

• The amount of money you bring home each month after taxes are taken out

• The total amount of money you spend each month

• The money you receive as gifts

• The amount you save each month

Suppose you notice that your monthly expenses are higher than your income. What is a strategic step you could take based on the advice in the material?

• Ignore the difference and continue spending.

• Make a list to identify unnecessary expenses and reduce them.

• Borrow more money to cover the difference.

• Increase your expenses further.

Which of the following best describes flexible spending?

• Extra costs such as entertainment, vacation, and fun

• Monthly car payments

• Insurance premiums

• Emergency savings

Why is it a good idea to include a fixed amount for savings in your monthly budget?

• To pay for emergency expenses

• To increase entertainment spending

• To avoid making wise choices

• To skip insurance payments

What is the purpose of the "DIFFERENCE" column in the budget template?

• To record the total income

• To compare the budgeted amount and the actual amount spent

• To list all sources of income

• To calculate taxes

Why is it important to research different checking accounts before opening one?

• Because all accounts are exactly the same

• Because some accounts have guidelines on balances and transactions

• Because you can only open one account in your lifetime

• Because banks require you to research before opening an account

Which card do you typically receive when you open a bank account that allows you to make purchases using the money in your account?

• Library card

• Gift card

• ATM card

• Membership card

If you withdraw $20 from a non-associated ATM, how much could it cost you after fees?

• $20

• $22

• $25

• $30

What is the main benefit of an Overdraft Protection Plan?

• It prevents you from ever spending money.

• It allows you to go over your limit without paying fees.

• It gives you free money.

• It increases your account interest rate.

Why is it important to match your deposits and charges with your balance each month?

• To ensure your records are accurate and avoid financial mistakes

• To increase your spending limit

• To avoid using a checkbook

• To make banking more complicated