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WorksheetsUnit 3 Budgeting Test
Total questions: 15
Worksheet time: 4hrs 45mins
Creating a budget can make you feel powerful! Why?
A budget puts you in control of your spending and saving, so you make good decisions and feel more confident
People who budget earn more money, so they can live a better life
You can't really budget unless you have an important job, which means that other people look up to you
Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things
Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...
Cell phone plan
Rent
Clothing
Renters Insurance
The two main portions of a budget are...
the money coming in (income) and the money you're spending (expenses)
the money coming in (expenses) and the money you're spending (income)
the cash you are spending in stores and the bills you are paying online
the items you want to buy and the money you need to save for retirement
Why is it important to be able to decide if an item is a NEED or a WANT?
When you budget, you should make sure all your needs are met first, then you can decide to spend on wants
Needs are worth spending money on, but you should never spend on a want
Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them
You cannot create a budget that has both needs and wants included -- you need them each in a separate budget
Ethan is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Ethan?
He loves watching movies, and he's already paid for all the streaming services, so now he needs the data
Unlimited data will allow him to play video games with his friends even when he's not at home, and he LOVES video games
He has so many social media accounts, and he needs to be able to check them throughout the day, even while in school
He has an hour-long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online
Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?
Do any of my friends have this item?
Will something bad happen if I don't have this item?
Do any of my friends have this item?
Will my teachers be excited if I buy this item, or will they be disappointed?
Will my teachers be excited if I buy this item, or will they be disappointed?
$8
$80
$80, minus any taxes she has to pay
$80, plus any taxes she has to pay
Brandon receives his paycheck, and it says his gross pay is $250 and his net pay is $200. How much money did he have in deductions this pay period?
$50
$200
$250
$450
Why should you use your NET pay when creating a budget?
Your net pay will always be higher, so you'll have more money to spend
Your net pay is a more accurate picture of how much money you have available to spend or save
Your employer knows what your gross pay is, but you only know what your net pay is
Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget
Complete this sentence: The federal government budgets its tax money on three large buckets of expenses -- mandatory spending, discretionary spending, and .....
interest on debt
the Constitution
budget funds
free programming
Three of these items represent services provided by the federal government using taxpayer money. Which one represents a personal expense instead?
Military protection
Medicare and Medicaid
Auto insurance
NASA space program
Who has to pay taxes to the US government?
Every citizen, regardless of their age or working status
Every person or company that earns income in the US
Anyone who owns a home or attends a public school
No one has to - taxes are a voluntary program
Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?
50% needs, 30% wants, 20% savings
50% budget, 30% needs, 20% wants
50% saving, 30% needs, 20% wants
$50 needs, $30 wants, $20 savings
How much money has this employee paid in deductions during this pay period?
$59.62
$114.16
$187.60
$13.92
How much money has this employee earned in gross pay this pay period?
$772.40
$960
$187.60
$40
