WorksheetsQuiz 4 - Budgeting
Total questions: 20
Worksheet time: 20mins
Budgeting is crucial to your financial success.
True
False
Preparing a budget includes:
Income and expenses (spending)
Only listing your expenses
Only listing your income
Only listing your debts
An example of a FIXED expense (doesn't change) could be:
Rent
Groceries
Petrol
Clothes
What is a record of income and spending and a plan for managing money?
Bank statement
Bank account
Budget
Interest rate
What do we call money available to spend on goods and services that are not essential?
Disposable income
Essential income
Variable expenditure
Fixed expenditure
Expenses that do not change from month to month, such as mortgage or rent.
Fixed
Variable
Expenses that vary from month to month, such as entertainment, car repairs or electricity bills.
Fixed
Variable
Making a purchase based on an immediate want or due to the pressure of advertising is considered Impulse Buying.
True
False
Which of the following is not a potential benefit of budgeting?
Reaching long-term goals
Building up an emergency fund
Avoiding debt
Increasing income
What’s the first thing you should do with any extra income?
Build up your savings
Quit your part-time job
Think of something you really want and buy it—you’ve earned it!
If your income was £1200 a month and this month your expenses were £500 on rent, £40 on phone and £160 on transport, what would be the balance?
£500
£700
£1000
£1200
What does Budgeting mean?
Borrowing money at a low interest rate
Moving money between accounts
Working out how much money is available for a purpose
Buying things for the lowest price
Disposable Income is calculated by...
Subtracting Expenditure from Income
Subtracting Income from Expenditure
Adding Income and Expenditure
Dividing Expenditure by Income
You earn £1000 a month. You spend £600 on rent, £150 on food and £60 on utilities. How much do you have left?
£109
£119
£190
£19
Which of the following are essential expenses? (Choose 2!)
Food
Rent
Phone
Socialising
Wages, Tax Credits and Benefits are Income or Expenditure?
Income
Expenditure
The best way to start the budgeting process is to:
Start tracking all of the money you spend for a period of time
Automatically deposit money into a savings account with each pay cheque
Pay off all your loans
Curbing your spending on dining out or entertainment
Which of the following are the best tools for budgeting?
Personal financial management software/app
A pencil and paper
Computer spreadsheets
Any of above. Whatever works best for you!
When putting together a budget, which of the following items should you include?
Fixed Expenses
Discretionary (optional) Expenses
Savings
All of the above
It is important to include savings when making your budget.
True
False
