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Budgeting 101

Total questions: 21

Worksheet time: 8mins

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.

It's common to have all of the following expenses BEFORE signing a lease EXCEPT...

a)

Renter's Insurance

b)

Application fee

c)

Application deposit

d)

Apartment hunting expenses

5.

Which of the following might you pay WHEN you sign your lease?

a)

Finder's fee

b)

Application fee

c)

Security deposit

d)

Renter's insurance

6.

According to a rule of thumb, rent shouldn't take up more than ___ % of your take-home pay.

a)

7-12%

b)

10-15%

c)

15-20%

d)

25-30%

7.

Which of the following would typically NOT be covered under renter's insurance?

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

8.

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)

But a certified, pre-owned car from the dealer

9.

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

a)

License and Registration fees

b)

Gasoline

c)

Utilities

d)

Insurance

10.

Which of the following reasons would explain why Justin has decided to forgo owning a car? (hint: choose 2 correct answers)

a)

Public transportation infrastructure does not exist

b)

The walking score in his city is high

c)

He only has his driver's permit

d)

There are numerous car dealerships in his area

11.

About how much of your income should go towards transportation?

a)

5-10%

b)

15-20%

c)

25-30%

d)

35-40%

12.

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

13.

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

14.

Which of the following is TRUE about unit pricing?

a)

Unit prices can help you compare the prices of similar items

b)

Unit price labels are universal throughout the country

c)

It's easy to compare quantities on a unit price label

d)

All states require unit price labels

15.

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)

16.

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

17.

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

18.

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

19.

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

20.

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

21.

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!"