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art of budgeting

Total questions: 56

Worksheet time: 5hrs 40mins

Name
Class
Date
1.

Rent/mortgage payment

a)

Fixed Expense

b)

Variable Expense

2.

paying for an amusement park ticket

a)

Fixed Expense

b)

Variable Expense

3.

buying shoes

a)

Fixed Expense

b)

Variable Expense

4.

phone bill

a)

Fixed Expense

b)

Variable Expense

5.

Jackie is 30 years old, married, and has 2 kids ages 8 and 6. Her income is $40,000 net pay. How much should she try to set aside for an emergency fund?

a)

$9,500

b)

$20,000

c)

$40,000

d)

$80,000

6.

According to the 50-30-20 rule, %50 of a person’s income should be spent on . . .

a)

fixed expenses

b)

variable expenses

c)

savings

7.

According to the 50-30-20 rule, %30 of a person’s income should be spent on . . .

a)

fixed expenses

b)

variable expenses

c)

savings

8.

According to the 50-30-20 rule, %20 of a person’s income should be spent on . . .

a)

fixed expenses

b)

variable expenses

c)

savings

9.

hats and gloves to wear in winter

a)

need

b)

want

10.

a roof over your head/shelter

a)

need

b)

want

11.

water

a)

need

b)

want

12.

How do wages and salary differ?

a)

Wages describe what you earn on an annual basis

b)

Wages mean you have a standard amount in each paycheck

c)

Salary describes what you earn on an annual basis

d)

Salaried employees are likely to be paid for overtime

13.

Budgeting is crucial to your financial success.

a)

True

b)

False

14.

The amount of money you take home is called your

a)

Net Pay

b)

Total Pay

c)

Gross Pay

d)

Available Pay

15.

The amount of money you make is called:

a)

Taxes

b)

Gross Pay

c)

Net Pay

d)

Available Pay

16.

If an expense can NOT be removed from your budget to save money, it is considered a _____.

a)

Income

b)

Need

c)

Want

d)

Savings

17.

Preparing a budget includes

a)

Income, Expenses, and Saving

b)

Only listing your debts

c)

Only listing your expenses

d)

Only listing your income

18.

Examples of Fixed Expenses include:

a)

Gas, food, phone

b)

Cable, entertainment, food

c)

Mortgage, loans, rent

d)

Clothing, gas, food

19.

David has an income of $15.50 and spends $10 a week at the game shop and $3.50 a week on art supplies. Is he within budget?

a)

Yes

b)

No

20.

Which one is a fixed (same amount, same time) payment?

a)

Groceries

b)

Rent

c)

Gas

d)

Clothing

21.

How do wages and salary differ?

a)

Wages describe what you earn on an annual basis

b)

Salary describes what you earn on an annual basis

c)

Wages mean you have a standard amount in each paycheck

d)

Salaried employees are likely to be paid for overtime

22.

Which of the following are TRUE about gross income and net income? (hint: choose 2 correct answers)

a)

Gross income and net income are the same

b)

Net income is sometimes called "take home pay"

c)

Gross income is the total amount earned before deductions

d)

Net income is the total amount earned before deductions

23.

Which of the following are TRUE about gross income and net income? (hint: choose 2 correct answers)

a)

Gross income and net income are the same

b)

Net income is sometimes called "take home pay"

c)

Gross income is the total amount earned before deductions

d)

Net income is the total amount earned before deductions

24.

Which of the following may NOT always appear on your paycheck stub?

a)

Gross Pay

b)

Net Pay

c)

Your Role/Title

d)

Local Tax

25.

It's common to have all of the following expenses BEFORE signing a lease EXCEPT...

a)

Renter's Insurance

b)

Application fee

c)

Application deposit

d)

Apartment hunting expenses

26.

Which of the following might you pay WHEN you sign your lease?

a)

Finder's fee

b)

Application fee

c)

Security deposit

d)

Renter's insurance

27.

According to a rule of thumb, rent shouldn't take up more than ___ % of your take-home pay.

a)

7-12%

b)

10-15%

c)

15-20%

d)

25-30%

28.

Which of the following would typically NOT be covered under renter's insurance?

a)

A friend slips and twists his ankle in your living room

b)

Your apartment is broken into and your laptop is stolen

c)

A fire destroys 80% of your belongings

d)

Your apartment is flooded, destroying your furniture

29.

Which of the following is a step you can take to mitigate the risk of buying a used car? (hint: choose 2 correct answers)

a)

Get a vehicle history report

b)

Have a mechanic inspect the car after you buy it

c)

Skip the test drive; you have time after you buy it to drive

d)

But a certified, pre-owned car from the dealer

30.

Which of the following is NOT a cost of owning a car?

a)

License and Registration fees

b)

Gasoline

c)

Utilities

d)

Insurance

31.

Which of the following reasons would explain why Justin has decided to forgo owning a car? (hint: choose 2 correct answers)

a)

Public transportation infrastructure does not exist

b)

The walking score in his city is high

c)

He only has his driver's permit

d)

There are numerous car dealerships in his area

32.

About how much of your income should go towards transportation?

a)

5-10%

b)

15-20%

c)

25-30%

d)

35-40%

33.

Jenna wants to decrease the amount of $ she spends on food. Which of the following would help? (hint: choose 2 correct answers)

a)

Decide what she will make for dinner that same day

b)

Go to the grocery store with a list

c)

Go to the store whenever she needs 1-2 items

d)

Keep staple foods (e.g. beans, rice) readily stocked

34.

Which of the following is TRUE about unit pricing?

a)

Unit prices can help you compare the prices of similar items

b)

Unit price labels are universal throughout the country

c)

It's easy to compare quantities on a unit price label

d)

All states require unit price labels

35.

A 18oz box of cereal costs $4.99. How would you calculate the unit price?

a)

18oz / $4.99

b)

9 oz / $2.50

c)

$4.99 / 18oz

d)

(18oz) x ($4.99)

36.

6 cans of tomato soup cost $14.99. What is the unit price?

a)

About $1.50

b)

About $2.50

c)

About $3

d)

About $3.50

37.

How can consolidating your student loans help your budget? (hint: choose 2 correct answers)

a)

You'll pay more in interest over time

b)

You can manage your money more easily since you're making just one payment

c)

Your monthly payment may decrease

d)

Your interest rate is guaranteed to decrease

38.

What is a deductible?

a)

The cost you and your insurance share

b)

The amount your insurance pays before you pay

c)

The discount you get on your health insurance every year

d)

The amount you pay before your insurance begins to pay

39.

How can consolidating your student loans help your budget? (hint: choose 2 correct answers)

a)

You'll pay more in interest over time

b)

You can manage your money more easily since you're making just one payment

c)

Your monthly payment may decrease

d)

Your interest rate is guaranteed to decrease

40.

How does the 50/30/20 rule of thumb for budgeting allocate your income?

a)

50% Needs, 30% Wants, 20% Savings & Debt Repayment

b)

50% Wants, 30% Needs, 20% Savings & Debt Repayment

c)

50% Savings & Debt Repayment, 30% Wants, 20% Needs

d)

50% Needs, 30% Savings & Debt Repayment, 20% Wants

41.

Which of the following is an example of buying something you NEED?

a)

"I want to replace something that is no longer working."

b)

"I want to impress someone/ change how they feel about me."

c)

"I'm feeling down, and I need to boost my spirits."

d)

"I don't want to miss out on these deals during the sale!"

42.
Budgeting is crucial to your financial success.
a)
True
b)
False
43.

If an expense can NOT be removed from your budget to save money, it is considered a _____.

a)

Income

b)

Want

c)

Need

d)

Savings

44.
Preparing a budget includes
a)
Income, Expenses, Saving
b)
Only listing your expenses
c)
Only listing your debts
d)
Only listing your income
45.
Examples of Fixed Expenses include:
a)
Mortgage, loans, rent
b)
Cable, entertainment, food
c)
Gas, food, phone
d)
Clothing, gas, food
46.

Which one is a fixed (same amount, same time) payment?

a)

food

b)

power

c)

mortgage

d)

petrol

47.

Fixed or variable expense: Rent?

a)

Fixed

b)

Variable

48.
Utilities
a)
Fixed Expenses
b)
Variable Expenses
49.
Car Insurance
a)
Fixed Expense
b)
Variable Expense
50.
Entertainment
a)
Fixed Expense
b)
Variable Expense
51.
Dining Out
a)
Fixed Expense
b)
Variable Expense
52.
Homeowner's Insurance
a)
Fixed Expense
b)
Variable Expense
53.
Clothing
a)
Fixed Expense
b)
Variable Expense
54.
Electricity is an example of a ______ expense
a)
fixed
b)
variable
55.
A vacation is an example of a _________
a)
need
b)
want
56.
Medical care is an example of a ______
a)
Need 
b)
Want