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Personal Budgeting Test Review

Total questions: 19

Worksheet time: 12mins

Name
Class
Date
1.

After creating a budget, you realize you're spending more than you are making. What are the first expenses that need to be cut from the budget?

a)

Fixed

b)

Variable

2.

Variable expenses are those which are:

a)

Required

b)

Different from month to month

c)

The same every month

d)

Only paid every other month

3.

Jane paid $35.92 for gasoline with her debit card. Which of the following is an accurate description of Jane's transaction?

a)

Jane's payment will affect her credit rating

b)

Jane will be charged interest for this purchase

c)

Jane's linked account will immediately have the $35.92 removed.

d)

Jane will make a payment for this purchase when she receives her monthly statement.

4.

An _____________ is anything you spend money on, while ___________________ is money earned through work or services.

a)

income; expense

b)

deposit; withdrawal

c)

expense; gifts

d)

expense; income

5.

Which payment method takes the amount out of your account immediately?

a)

Credit

b)

Check

c)

Debit

d)

Cash

6.

If the government takes out 22% of your monthly income for taxes, how much would be taken out of your paycheck if your monthly income was $4,892.55

a)

$1,050.00

b)

$2,458.50

c)

$1,076.36

d)

$222.38

7.

Which of the following would be considered variable expenses

a)

Car Insurance

b)

Electricity Bill

c)

Rent

d)

New Tires

8.

If a person makes $2548.00 monthly and 20% is taken out for taxes and insurance. What is their net income?

a)

$509.60

b)

$2548.00

c)

$1586.43

d)

$2,038.40

9.

Credit cards charge ___________ fees when you do not pay off your balance.

a)

Late

b)

Withdrawal

c)

Interest

d)

Expense

10.

The amount of income you receive after taxes, social security, and insurance are taken out.

a)

Net Worth

b)

Net Profit

c)

Net Income

d)

Income

11.

Gwen has $438,298 in assets and $102,879 in liabilities. What is her net worth?

a)

$335,419.00

b)

$541,177.00

c)

$438,298.00

d)

$102,879.00

12.

Which of the following is not a common budgeting strategy?

a)

Separating needs from wants

b)

Creating a savings plan

c)

Establishing an emergency fund

d)

Ensuring expenses are greater than income

13.

Rent is a variable expense.

a)

True

b)

False

14.

If Cole works 80 hours every two weeks for $18.50 an hour, what is his monthly income before taxes are taken out?

a)

$1,480.00

b)

$2,960.00

c)

$5,920.00

d)

$1820.00

15.

Which of these is NOT one of the four steps that you need to follow to calculate your monthly budget?

a)

Create a list of monthly expenses

b)

Create a list where expenses are greater than income collected

c)

Gather financial statements

d)

Record all sources of income

16.

The goal of a budget is to create a monthly __________________.

a)

Deposit

b)

Guide

c)

Budget

d)

Average

17.

Anything that you spend money on is an ______________.

a)

Expense

b)

Withdrawal

c)

Income

d)

Deposit

18.

Which of the following is an expense which stays relatively the same from month to month?

a)

Fixed Expense

b)

Variable Expense

c)

Estimated Expense

d)

Average Expense

19.

You just started a job as a summer camp counselor. Your monthly income is $1562.32 before taxes. If 25% is taken out for taxes, what will your net income be?

a)

$390.58

b)

$1,050.00

c)

$858.90

d)

$1,171.74