WorksheetsBudgeting and Consumer Skills Review
Total questions: 60
Worksheet time: 3600secs
Which of the following is a benefit of using a budget?
Helps to keep track of the money you receive
Helps to prioritize your spending
Helps reach short- and long-term financial goals
All of the above
Which of the following is NOT a benefit of using a budget?
A budget can help you purchase anything you want.
A budget can help you keep track of your money.
A budget can help you make plans to reach your financial goals.
A budget can help you decide the importance of your expenses.
Why is using a budget beneficial?
Helps to keep track of the money you receive
Helps to prioritize your spending
Helps reach short- and long-term financial goals
All of the above
Which of the following should NOT be considered when setting a current budget?
Your financial goals
Future income
Needs and wants
Needs and wants
Which of the following should you consider when setting a budget?
Your financial goals
Needs and wants
Savings
All of the above
What should be considered when setting a budget?
Needs and wants
Savings
Time management goals
Needs, wants, and savings
___________ are good places to look to find your current expenses when building your budget.
Banks and credit unions
Grocery stores and concerts
Bank and credit statements
Online research websites
Where should you look to find your current expenses when building your budget?
ask your parents
your wallet
bank and credit statements
your bank representative
Bank statements, credit statements, and records of cash expenses help you to estimate your ________
credit score
emergency fund needs
expenses
available investments
In addition to needs, what should you plan for first when creating a budget?
Possible charitable donations
Shopping money
Investments
Recurring expenses
In your budgeting process, when should you look at recurring expenses?
Before reviewing your wants
After considering entertainment expenses
Before looking at your needs
After your wants but before you needs
Which of the following statements is TRUE?
Recurring expenses don't need to be planned for because they rarely happen.
Recurring expenses are expenses that can never be stopped.
Recurring expenses should be planned for after looking at your wants
None of the above
Which of the following is a way to track your spending?
Spreadsheet budget
Envelope method
An app
All of the above
The envelope method, notebook and pencil, and online software are all methods of ______.
planning for your future
understanding your current expenses
estimating your unexpected expenses
tracking your spending
Which of the following is NOT a good way to track your spending?
In your head
Notebook and pencil
Envelope method
Online software or app
Which choice or choices best describes the purpose of an emergency fund?
An emergency fund prepares you for unexpected expenses.
An emergency fund keeps you from borrowing money from friends and family.
An emergency fund removes the worry about expenses not in the budget.
All of the above are good reasons to have an emergency fund.
Which of the following is NOT true about emergency funds?
They are used for anything listed on the budget.
They can keep you from borrowing money from friends and family.
They help you prepare for unexpected expenses.
They help remove the worry about expenses not in the budget.
This helps you prepare for unexpected expenses.
Credit cards
Checking account
Emergency fund
None of the above
When setting a budget, you can choose to make room for:
Financial goals
Entertainment expenses
Charitable donations
All of the above
Charitable donations, entertainment expenses, and financial goals are all examples of...
activities that contribute to overspending.
things that are considered needs.
activities that are necessary for a healthy lifestyle.
things to consider when creating a budget.
When setting a budget, you should consider...
financial goals, current expenses, and income.
mostly income.
creative ways to spend your money.
mostly your goals.
Unexpected expenses…
can make it hard to stick to your budget.
may cause you to be unable to pay necessary bills.
should be planned for.
all of the above
Which of the following is TRUE regarding unexpected expenses?
They usually don’t affect your budget.
They should be planned for.
They usually don't affect your ability to pay bills.
They should not be included in your budget.
What is NOT true about unexpected expenses?
They do not occur if you have a budget.
They could impact your budget in a negative way.
They could interfere with your ability to pay your bills.
They should be planned for so that you can keep within your budget.
Which of the following expenses would be a good reason to spend money from an emergency fund?
Repair your laptop that you use for homework.
Upgrade your phone to the latest model.
Buy new track shoes because they’re in style.
Purchase concert tickets to see your favorite artist.
An emergency fund should NOT be used for…
fixing a blown tire on your car that you use to get to work.
repairing your laptop that you use for homework.
a last-minute school trip.
a sudden health issue that needs care.
An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for…
spending money from your “rent” envelope.
emergency fund spending.
tracking all of the money you spent in a month.
getting an extra job so you can have money to cover that expense.
What is NOT a good way to prevent unnecessary spending?
Cancel any unused recurring expenses like subscription boxes
Use an app to find the cheapest gas station
Make your own food more often
Buy all of your wants at one time.
How can you ensure you don't go over your budget?
Round up your expense estimates to add a buffer
Use most of your budget for entertainment expenses
Find a friend that enjoys going shopping
Buy all of your wants at one time.
What budgeting tip(s) would help you to stay on track financially?
Find a friend with similar goals and hold each other accountable
Put aside fun money in your budget so you're not missing out
Only use your closest gas station to fill up gas
All of the above
When you are deciding what to buy, you should not...
compare the unit price of similar items.
read reviews from unbiased sources.
assume that buying the cheapest item is the smartest choice.
wait for sales to get the best price.
Making a good purchasing decision requires __________.
comparing the prices of similar items
reading reviews of the product
waiting until the product is on sale, if possible
All of the above
When you are deciding what to buy, you should...
pick the cheapest item to get the best deal.
pick the most expensive item to get the best quality.
trust influencers to pick the best items for you.
trust influencers to pick the best items for you.
How is an advertisement different from a comment from a regular consumer?
It isn’t any different.
The advertisement is likely one-sided.
The advertisement may have been posted by the seller.
The advertisement is made by an influencer who gets paid.
How is a post from a social media influencer different than a comment from a regular consumer?
It isn’t any different.
The post by the influencer is likely one-sided.
The post by the influencer may have been posted by the seller.
The influencer is paid to post the product.
What is one of the best ways to get reliable information about a product?
Follow a social media influencer
Look for the advertisements
Search online reviews
Ask someone who has never used it
Which example shows an advantages of owning a car over leasing one?
Smaller monthly payments and good warranty to cover repairs.
Expiring warranty means that you will get to handle repair payments.
No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.
You will drive a fairly new car for a limited period of time.
Which of the following is NOT an advantage of owning a car?
Smaller down and monthly payments than leasing a car
Drive unlimited number of miles
Flexibility to be able to customize it
Yours to keep and sell when you wish
What is the best reason why someone would want to lease a house instead of buying one?
They want full responsibility for all repairs.
They want to be able to hopefully make money when they sell the place.
They are planning on living there for a short period of time.
They want to avoid rent increases and dealing with a landlord.
A pack of 24 pencils is more expensive than 12 pencils, but why could buying the 24 pack be the better deal?
The price of each pencil, or the unit price, is actually cheaper in the 12 pack.
The price of each pencil, or the unit price, is actually cheaper in the 24 pack.
The 24 pack comes with a carrying case.
This statement is false. Buying fewer pencils will always be a better deal.
The price of a single item within a group of items is known as the ______________ of the item.
group price
item price
unit price
total price
Why is figuring out the unit price of something useful when shopping?
It helps you check to see if the price is correct.
It helps you locate items in the store.
It helps you determine the best deal.
It determines if a coupon is still usable.
Which payment option is not accepted online?
Cash
Check
Debit Card
Credit Card
Which payment option takes money out of your bank immediately?
Cash
Check
Debit Card
Credit Card
Which payment option could have interest charged to you?
Cash
Check
Debit Card
Credit Card
When making a large purchase, you should avoid everything EXCEPT _______________________.
excessive fees.
being forced to buy additional warranties.
add-ons that seem too good to be true.
a price that fits comfortably in your budget.
What are possible red flags or signs of a scam when buying a car?
Being told your financing fell through
Lengthy negotiations
Charging of excessive fees
Both A and C
Which of the following is NOT be a warning sign of a scam when buying a car or other big purchases?
Being forced into warranties
A price that fits comfortably in your budget
Excessive fees
Add-ons that seem too good to be true
Which of the following is NOT a useful strategy when making an informed purchase?
Calculate the unit price of the product.
Purchase a product based on a social media influencer.
Read the online reviews of the product and ask trusted friends who use it.
Compare your option to similar products.
How does a consumer know whether a purchase may be a good deal?
A large percentage of positive customer ratings offer detailed explanations.
The item has the most features compared to other similar items.
The price is the most expensive for that type of item.
Both A and B
What is one of the best ways to get reliable information about a product?
Follow a social media influencer
Look for the advertisements
Search online reviews
Ask someone who has never used it
Which example shows an advantage of owning a car over leasing one?
Smaller monthly payments and good warranty to cover repairs.
Expiring warranty means that you will get to handle repair payments
No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.
You will drive a fairly new car for a limited period of time.
Which of the following is NOT an advantage of owning a car?
Smaller down and monthly payments than leasing a car.
Drive an unlimited number of miles.
Flexibility to be able to customize it.
Yours to keep and sell when you wish
What is the best reason for why someone would want to lease a house instead of buy one?
They want full responsibility for all repairs.
They want to be able to hopefully make money when they sell the place.
They are planning on living there for a short period of time.
They want to avoid rent increases and dealing with a landlord.
Which fact supports the idea that renting is a good option for living in a place for a short period of time?
Renting requires a large down payment.
Leases are generally for a month or a year.
Landlords take care of most maintenance.
Mortgages are usually for 15 or 30 years.
Which housing option gives you more freedom and more responsibility?
Leasing a house.
Borrowing a house.
Buying a house.
Housesitting
Leasing a car may be a better option than buying a car if...
you travel great distances regularly.
you have enough money for a large down payment.
you don't plan on having it for long and don't want to worry about regular maintenance.
you want the extended warranty and maintenance because you plan on having the car for a while.
Which payment option can offer additional security like fraud protection?
Cash
Check
Debit Card
Credit Card
Which method of payment actually is a form of borrowing money that needs to be paid back later?
Cash
Credit Card
Debit Card
Check
Which forms of payment is linked to a bank account which limits the amount of money you can spend to balance in your account?
Cash & credit cards
Checks & debit cards
Debit card & credit cards
Credit cards & checks
