WorksheetsChapter 3 Review - Planning and Budgeting
Total questions: 9
Worksheet time: 5mins
What value does a spending journal bring?
It provides an opportunity to analyze where you may be wasting money.
It provides you a base whereby you can create a budget.
It provides insight into your spending habits.
All of the above.
What is the equation for a balance sheet?
Balance Sheet - Net Worth = Assets
Assets + Liabilities = Net Worth
Assets - Liabilities = Net Worth
Income - Expenses = Net Worth
Which one of the following is NOT an asset?
A bicycle
A jar full of saved coins from loose change
A car loan
An IOU from your roommate
Which one of the following is NOT a liability?
A credit card balance
A car loan
A student loan
A debit card
When is your cash flow "in the red"?
Income > Spending
Spending > Income
Net Cash Flow > Income - Spending
Net Cash Flow > Spending - Income
Define opportunity cost.
The money it costs to take advantage of an opportunity
The cost of an alternative that must be forgone in order to pursue a certain action
Payment for an opportunity
The cost of opportunities to purchase necessities
Identify a strategy to spend less and earn more.
Pay yourself first.
Automatically transfer savings and investments out of your paycheck or checking account.
Break down your savings goals into monthly, weekly and daily amounts.
All of the above.
What are some strategies for keeping to a budget?
Weekly budget meetings
Envelope system
Bargain shopping and coupon clipping
All of the above
What do you use for a foundation to build a budget?
A spending journal
A microsoft budget template
Age appropriate examples from www.mint.com
Your neighbor's plan
