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Budgeting Final

Total questions: 16

Worksheet time: 4hrs 0mins

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.

It's common to have all of the following expenses BEFORE signing a lease ...(hint: pick 3 correct answers.)

a)

Renter's Insurance

b)

Application fee

c)

Application deposit

d)

Apartment hunting expenses

4.

Which of the following would typically be covered under renter's insurance?(Hint: pick 3 correct answers)

a)

A friend slips and twists his ankle in your living room

b)

Your apartment is broken into and your laptop is stolen

c)

A fire destroys 80% of your belongings

d)

Your apartment is flooded, destroying your furniture

5.

Which of the following is a step you can take to mitigate the risk of buying a used car? (hint: choose 2 correct answers)

a)

Get a vehicle history report

b)

Have a mechanic inspect the car after you buy it

c)

Skip the test drive; you have time after you buy it to drive

d)

Buy a certified, pre-owned car from the dealer

6.

Which of the following are typical costs of owning a car? (Hint: pick 3 correct answers)

a)

License and Registration fees

b)

Gasoline

c)

Utilities

d)

Insurance

7.

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

8.

An 18oz box of cereal costs $3.99. How would you calculate the unit price?

a)

18oz / $3.99

b)

9 oz / $2.00

c)

$3.99 / 18oz

d)

(18oz) x ($3.99)

9.

6 cans of tomato soup cost $5.99. What is the unit price?

a)

About $3.00

b)

About $1.00

c)

About $5.99

d)

About $2.00

10.

Jabar broke his leg while riding his bike. How does having health insurance help him?

a)

Jabar will likely have to pay $0 towards his medical costs

b)

Jabar will likely have to cover 100% of his medical costs

c)

Jabar will likely owe a portion of his medical costs

d)

Having health insurance makes no difference

11.

What is a deductible?

a)

The cost you and your insurance share

b)

The amount your insurance pays before you pay

c)

The discount you get on your health insurance every year

d)

The amount you pay before your insurance begins to pay

12.

How can consolidating your student loans help your budget? (hint: choose 2 correct answers)

a)

You'll pay more in interest over time

b)

You can manage your money more easily since you're making just one payment

c)

Your monthly payment may decrease

d)

Your interest rate is guaranteed to decrease

13.

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

14.

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!"

15.

According to the 50-20-30 rule what is a general rule of thumb on how much you should save?

a)

5% of your income

b)

10% of your income

c)

20% of your income

d)

30% of your income

16.

Free Point! (This is worth 5 bonus points if you only choose the correct answer.)

a)

Pick this answer

b)

Seriously, pick that answer

c)

Don't pick this answer

d)

Im Ernst, ich verstehe die Abfrage nicht.