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Unit 3 Budgeting Review

Total questions: 16

Worksheet time: 13mins

Name
Class
Date
1.

A breakdown of your income and expenses for a set period of time

(a)  

2.

The two main portions of a budget are...

a)

income

b)

retirement

c)

expenses

d)

Christmas gifts

3.

Things you have to have; these are essential

(a)  

4.

Why is it important to be able to decide if an item is a NEED or a WANT?

a)

Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them

b)

Needs are worth spending money on, but you should never spend on a want

c)

When you budget, you should make sure all your needs are met first, then you can decide to spend on wants

5.

Putting aside money for future use

(a)  

6.

Creating a budget can make you feel powerful! Why?

a)

People who budget earn more money, so they can live a better life

b)

A budget puts you in control of your spending and saving, so you make good decisions and feel more confident

c)

You can't really budget unless you have an important job, which means that other people look up to you

7.

Jennifer's part-time job pays her $5 per hour. She works for 10 hours this pay period. How much is her gross pay?

a)

5

b)

15

c)

50

8.

Brent receives his paycheck, and it says his gross pay is $415 and his net pay is $300. How much money did he have in deductions this pay period?

(a)  

9.

The amount of money you receive in your paycheck after any deductions or taxes are taken out

(a)  

10.

a tax on the income of a person or business

(a)  

11.

Why should you use your NET pay when creating a budget?

a)

Your net pay is a more accurate picture of how much money you have available to spend or save

b)

Your net pay will always be higher, so you'll have more money to spend

c)

Your employer knows what your gross pay is, but you only know what your net pay is

12.

The cost required to pay for something

(a)  

13.

Mike is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

a)

Will my teachers be excited if I buy this item, or will they be disappointed?

b)

Will something bad happen if I don't have this item?

c)

Do any of my friends have this item?

14.

Things you would like to have; they are not absolutely necessary, but they would be nice to have

(a)  

15.

A budgeting technique where 50% of your paycheck is spent on needs, 30% on wants, and the last 20% on savings.

a)

50/20/30 Rule

b)

30/20/50 Rule

c)

50/30/20 Rule

16.

The amount of money you receive in your paycheck before any deductions or taxes are taken out

(a)