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Budgeting Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A(n) ____________ is what people can use to make sure they live within their means.

a)

appointment

b)

schedule

c)

budget

d)

register

2.

The full amount of our salary is also known as our:

a)

Entire pay

b)

Take home pay

c)

Gross pay

d)

None of these

3.

Ed wants to reduce his fixed expenses. His best move would be to:

a)

Get a part-time job

b)

Buy less clothes each month

c)

Find a place with lower rent

d)

Stop using his credit card to buy things

4.

What do we call the separate fund that people should have just in case a situation arises where they need access to a substantial sum of money?

a)

Rainy day fund

b)

Emergency fund

c)

Super fund

d)

Overage fund

5.

A family spends $500 more than it planned. The most likely result will be that the family will:

a)

Wait to make the home loan payment

b)

Wait to make the car payment

c)

Wait to pay the electric bill

d)

Cut $500 from its planned savings

6.

The computer software that can most effectively help us plan our income and spending is:

a)

PowerPoint

b)

Google Sheets

c)

Acrobat

d)

Word

7.

When the actual amount we spent was in excess of the amount we planned to spend, we are:

a)

Over budget

b)

Under budget

c)

On budget

d)

None of these

8.

When creating a budget, you should make sure to “PYF” which stands for:

a)

Prevent Yesterday’s Fraud

b)

Pay Yourself First

c)

Pen Your Finances

d)

Put Your Finances in Check

9.

The 50/20/30 rule suggests that you should use:

a)

50% of your income for necessities, 20% for long term savings and 30% to lifestyle choices

b)

50% of your income for wants, 20% for needs and 30% to lifestyle choices

c)

50% of your income for long term savings, 20% for needs and 30% to fun choices

d)

50% of your income for fun choices, 20% for long term savings and 30% to housing

10.

A goal is best defined as:

a)

The end result of something a person intends to acquire, achieve, do, reach, or accomplish

b)

Something thought to be a necessity or essential items required for life

c)

A fundamental belief or practice about what is desirable, worthwhile, and important to an individual

d)

Something unnecessary but desired or items which increase the quality of living

11.

A want is best defined as:

a)

The end result of something a person intends to acquire, achieve, do, reach, or accomplish

b)

Something thought to be a necessity or essential items required for life

c)

A fundamental belief or practice about what is desirable, worthwhile, and important to an individual

d)

Something unnecessary but desired or items which increase the quality of living

12.

A need is best defined as:

a)

The end result of something a person intends to acquire, achieve, do, reach, or accomplish

b)

Something thought to be a necessity or essential items required for life

c)

A fundamental belief or practice about what is desirable, worthwhile, and important to an individual

d)

Something unnecessary but desired or items which increase the quality of living

13.

An example of a need is:

a)

Adequate shelter

b)

An unused vehicle

c)

Brand name shoes

d)

All of the above

14.

An example of a want is:

a)

Safe drinking water

b)

Basic clothing

c)

Laptop computer

d)

All of the above

15.

A _______________ expense is one that remains the same each month.

a)

fixed

b)

variable

c)

periodic

d)

None of these

16.

A _______________ expense is one that changes each month depending on usage.

a)

fixed

b)

variable

c)

periodic

d)

None of these

17.

What is the last step in creating a budget?

a)

Balance & adjust your budget

b)

Set short & long-term goals

c)

Determine your financial situation

d)

Estimate expenses

18.

What is the first step in creating a budget?

a)

Balance & adjust your budget

b)

Determine your financial situation

c)

Set short & long-term goals

d)

Estimate future expenses

19.

Rent, mortgage payments, tuition and insurance payments are all examples of:

a)

variable expenses

b)

fixed expenses

c)

discretionary expenses

d)

periodic expenses

20.

The money that is left over once all expenses have been paid and is used on whatever you like is called:

a)

Discretionary Income

b)

Fixed Expenses

c)

Cost-Benefit Analysis

d)

Net Pay