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Budgeting UNIT 2

Total questions: 48

Worksheet time: 2hrs 37mins

Name
Class
Date
1.

How do wages and salary differ?

a)

Wages describe what you earn on an annual basis

b)

Salary describes what you earn on an annual basis

c)

Wages mean you have a standard amount in each paycheck

d)

Salaried employees are likely to be paid for overtime

2.

Which of the following are TRUE about gross income and net income? (hint: choose 2 correct answers)

a)

Gross income and net income are the same

b)

Net income is sometimes called "take home pay"

c)

Gross income is the total amount earned before deductions

d)

Net income is the total amount earned before deductions

3.

Which of the following may NOT always appear on your paycheck stub?

a)

Gross Pay

b)

Net Pay

c)

Your Role/Title

d)

Local Tax

4.

Which of the following is NOT a cost of owning a car?

a)

License and Registration fees

b)

Gasoline

c)

Utilities

d)

Insurance

5.

Jenna wants to decrease the amount of $ she spends on food. Which of the following would help? (hint: choose 2 correct answers)

a)

Decide what she will make for dinner that same day

b)

Go to the grocery store with a list

c)

Go to the store whenever she needs 1-2 items

d)

Keep staple foods (e.g. beans, rice) readily stocked

6.

A 18oz box of cereal costs $4.99. How would you calculate the unit price?

a)

18oz / $4.99

b)

9 oz / $2.50

c)

$4.99 / 18oz

d)

(18oz) x ($4.99)

7.

6 cans of tomato soup cost $14.99. What is the unit price?

a)

About $1.50

b)

About $2.50

c)

About $3

d)

About $3.50

8.

How does the 50/30/20 rule of thumb for budgeting allocate your income?

a)

50% Needs, 30% Wants, 20% Savings & Debt Repayment

b)

50% Wants, 30% Needs, 20% Savings & Debt Repayment

c)

50% Savings & Debt Repayment, 30% Wants, 20% Needs

d)

50% Needs, 30% Savings & Debt Repayment, 20% Wants

9.

Which of the following is an example of buying something you NEED?

a)

"I want to replace something that is no longer working."

b)

"I want to impress someone/ change how they feel about me."

c)

"I'm feeling down, and I need to boost my spirits."

d)

"I don't want to miss out on these deals during the sale!"

10.
Budgeting is crucial to your financial success.
a)
True
b)
False
11.

If an expense can NOT be removed from your budget to save money, it is considered a _____.

a)

Income

b)

Want

c)

Need

d)

Savings

12.
Preparing a budget includes
a)
Income, Expenses, Saving
b)
Only listing your expenses
c)
Only listing your debts
d)
Only listing your income
13.
Examples of Fixed Expenses include:
a)
Mortgage, loans, rent
b)
Cable, entertainment, food
c)
Gas, food, phone
d)
Clothing, gas, food
14.

Which one is a fixed (same amount, same time) payment?

a)

food

b)

power

c)

mortgage

d)

petrol

15.
Car Payment
a)
Fixed Expense
b)
Variable Expense
16.

Fixed or variable expense: Groceries

a)

Fixed

b)

Variable

17.

Fixed or variable expense: Rent?

a)

Fixed

b)

Variable

18.
Utilities
a)
Fixed Expenses
b)
Variable Expenses
19.
Gas
a)
Fixed Expense
b)
Variable Expense
20.
Car Insurance
a)
Fixed Expense
b)
Variable Expense
21.
Entertainment
a)
Fixed Expense
b)
Variable Expense
22.
Dining Out
a)
Fixed Expense
b)
Variable Expense
23.
Homeowner's Insurance
a)
Fixed Expense
b)
Variable Expense
24.
Clothing
a)
Fixed Expense
b)
Variable Expense
25.
Electricity is an example of a ______ expense
a)
fixed
b)
variable
26.
Car insurance is a ____________ expense
a)
fixed
b)
variable
27.
A vacation is an example of a _________
a)
need
b)
want
28.
Medical care is an example of a ______
a)
Need 
b)
Want
29.
Medical care is an example of a ______
a)
Need 
b)
Want
30.

Which of the following is generally the most expensive category in a person’s budget?

a)

Healthcare

b)

Clothing

c)

Transportation

d)

Housing

31.

As a rule of thumb, every family should save at least _____ months’ income in case of emergency.

a)

Two

b)

Three

c)

Four

d)

Six

32.

The amount of money you take home is called your

a)

Net Pay

b)

Gross Pay

c)

Total Pay

d)

Available Pay

33.

Taxes vary from state to state and city to city. To make it easier to factor an estimated required annual salary, figure an average of _____% is withheld from your paycheck.

a)

10

b)

15

c)

20

d)

25

34.

The amount of money you make is called:

a)

Taxes

b)

Net Pay

c)

Gross Pay

d)

Available Pat

35.

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

a)

Dining out at local restaurants

b)

Loan payment on a new car

c)

Expenses for new clothes

d)

Postponing a purchase for a big-screen TV

36.

After graduation, Leila is determined to live in one of the country's 10 largest cities. Her top priorities are to save money and be car-free. Which two factors do you think are MOST important for her to consider when choosing a city? 1) Quality of Public Transportation 2) Cost of license and registration 3)Location of her home and work 4)Average cost of Uber, Lyft, or Taxis

a)

2 and 4

b)

1 and 3

c)

3 and 4

d)

1 and 4

37.

While shopping for groceries you are comparing the cost of three kinds of cereal that you like: Cereal A costs $3.20 for a 16 oz. box, Cereal B costs $5.00 for a 32 oz. box, Cereal C costs $2.50 for a 10 oz. box. Rank order the options from lowest unit cost to highest unit cost.

a)

B,C,A

b)

A,B,C

c)

B,A,C

d)

C,B,A

38.

Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After federal and state taxes and Social Security/Medicare taxes are deducted, his take-home pay is $2,500. Which of the statements below is correct?

a)

His gross pay is $2,500 and net pay is $3,000.

b)

His gross and net pay are $3,000.

c)

His net pay and gross pay are $2,500.

d)

His gross pay is $3,000 and net pay is $2,500.

39.

You overhear your cousin talking about the importance of creating and sticking to a budget. Which of the following reasons he gives below is actually FALSE?

a)

A budget can help you identify any bad spending habits.

b)

Using a budget can allow you to work towards your financial goals.

c)

Having a budget can help you create an emergency fund.

d)

A budget can help you be aware of upcoming sales and discounts at stores you usually go to.

40.

A tax is also known as a financial plan.

a)

False

b)

True

41.

Taxes help to pay for things such as housing and food stamps.

a)

True

b)

False

42.

Math is used in everyday life and not just in the classroom.

a)

True

b)

False

43.

It is smart NOT to save monthly for a yearly vacation.

a)

False

b)

True

44.

Money paid to the federal government is called

a)

Federal Tax

b)

Budget

c)

Income Tax

d)

Percent

45.

Jaxson can budget 1% of his monthly income to gifts. If he makes $1,295 a month, how much money can he put toward his gift category?

a)

$12.95

b)

$1.29

c)

$120.95

d)

$1.95

46.

A financial plan is called a

a)

budget

b)

tax

c)

allowance

d)

income

47.

The amount of an individual’s income that is left after taxes and personal necessities have been paid.

a)

Discretionary income

b)

Net income

c)

Gross income

d)

Non-discretionary income

48.

A fixed compensation periodically paid to a person for regular work or services.

a)

Wages

b)

Income

c)

Discretionary income

d)

Salary