Budgeting

Which of the following is considered a want rather than a need?

• Rent or mortgage payment

• Groceries

• Electricity bill

• Streaming service subscription

What is the main purpose of a budget?

• To record only large purchases

• To plan how to spend and save money

• To keep track of what others are spending

• To limit fun activities

In the 50/30/20 budgeting rule, what does the “20” represent?

• 20% for rent and utilities

• 20% for fun and entertainment

• 20% for savings and debt repayment

• 20% for groceries

What does “pay yourself first” mean?

• Spend money on entertainment before paying bills

• Save or invest a portion of your income before covering expenses

• Pay your rent or mortgage first each month

• Spend all your money before saving

What is the first step in creating a realistic monthly budget?

• Tracking income and expenses

• Buying items you want first

• Ignoring irregular expenses

• Spending before saving

If your rent increases but your salary stays the same, what is the most responsible action to take?

• Ignore the increase

• Use a credit card for the difference

• Adjust your budget by reducing spending in other categories

• Quit your job immediately

What is the first step in managing financial stress?

• Ignoring bills until later

• Analyzing spending to identify problem areas

• Spending more on wants

• Cancelling all savings goals

Which of the following actions would best help someone handle an unexpected financial emergency?

• Use credit cards for all expenses

• Create an emergency savings fund in advance

• Stop tracking spending entirely

• Spend only on entertainment

1. Which of the following accurately describes the envelope budgeting strategy?

• Putting cash for different spending categories into separate envelopes and only spending what's in each envelope

• Regularly buying investments like stocks or bonds with a certain amount of money each month

• Saving a small part of your income every week to buy something big at the end of the year

• Keeping a written record of all of the money you receive and spend in a notebook to see where your money goes

You are interested in renting an apartment after graduating college. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT

• Proof of employment

• First and last month's rent

• A security deposit

• A bank account