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Math Models Unit 4 Budget assessment

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

Check ALL that are a consequence of overdrawing your checking account

a)

Your bank will give you a free gift

b)

Stress from bad money management

c)

Overdraft fee from the bank

2.

Doing a budget.....

a)

does not show if you are overspending in an area

b)

Makes overspending more likely

c)

Tells your money exactly where you want it to go!

3.

what expenses should your budget include?

a)

Fixed Expenses

b)

extreme expenses

c)

Variable Expenses

d)

Discretionary expenses

4.

Which of the following statements is FALSE

a)

A budget is the summary of what has already been spent

b)

A budget can be changed with needs and income of the month

c)

A budget is a written plan for saving and spending

5.

Which of the following is something a typical millionaire would do?

a)

By a Lamborghini

b)

Replace things that are not broken

c)

Spend less money than they make and save the extra

6.

What category of expense is RENT?

a)

Fixed expense

b)

Variable expense

c)

discretionary expense

7.

Eating out is what kind of expense? Pick the best category

a)

Fixed expense

b)

Variable expense

c)

Discretionary expense

8.

Car repairs are which kind of expense?

a)

Intermittent (occasional) expense

b)

Fixed expense

c)

Variable expense

9.

Groceries are what kind of expense? Choose the best option

a)

Fixed Expense

b)

Variable expense

c)

Discretionary expense

10.

Which is NOT a guideline for budgeting with an irregular (changing) income?

a)

Make a list of all of your expenses for the month coming up

b)

Prioritize the list in order of importance

c)

It's no different than budgeting with a regular income

11.

When using the envelope system, which envelope has the cash for groceries?

a)

Food

b)

Rent

c)

clothing

d)

pocket cash

12.

A zero-based budget is the best method of budgeting because

a)

It's less complicated than other budgets

b)

It assigns every dollar you make to a specific purpose

c)

It allows less money for the things you want

13.

The number 1 cause of divorce in North America today is stress and disagreements over money

a)

True

b)

False

14.

The envelope system helps you to manage your spending on things that are not fixed expenses

a)

True

b)

False

15.

If you write a zero based budget every month, you don't have to balance your checking account

a)

True

b)

False

16.

Budgeting is critical to your financial success and wealth building

a)

True

b)

False

17.

A debit card can't be used for online purchases

a)

True

b)

False

18.

Pay yourself first means you should assign a portion of your income to saving every month

a)

True

b)

False

19.

Having more than one bank account is never a good idea since it can complicate money management

a)

True

b)

False

20.

Setting up automatic bank account transfers is the best way to build your savings for emergency fund or large purchases

a)

True

b)

False