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Foundations in Personal Finance-Budgeting

Total questions: 21

Worksheet time: 16mins

Name
Class
Date
1.

Although the majority of Americans think budgeting is important, about ________ of Americans actually use a budget.

a)

95 %

b)

65 %

c)

25 %

d)

35 %

2.

Which of the following is NOT a component of a budget?

a)

Credit Score

b)

Saving

c)

Spending

d)

Giving

3.

What are the Four Walls?

a)

Utilities, college fund, restaurants, and car insurance

b)

Cell phone, car insurance, Shelter, and money for entertainment

c)

Food, Utilities, Shelter, and Transportation

d)

Food, Utilities, Transportation, and college fund

4.

How often should you create a budget?

a)

Daily

b)

Weekly

c)

Monthly

d)

Semiannually

5.

The best way to budget is ...

a)

by using a digital app.

b)

by using a spreadsheet.

c)

by using paper and pencil.

d)

the method that works best for you.

6.

Your monthly rent or house payment is an example of a ________ expense.

a)

Fixed

b)

Variable

c)

Intermittent

d)

Discretionary

7.

Discretionary or non-essential expenses are based on _______.

a)

needs

b)

wants

8.

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

d)

Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things

9.

What is an example of a monthly variable cost?

a)

groceries

b)

car payment

c)

gym membership

d)

student loan payment

10.

Your pay before tax deductions is known as

a)

Total Income

b)

Paycheck

c)

Net pay

d)

Gross pay

11.

Which vocab term is for a written spending plan, or written money management plan?

a)

Journal

b)

Checkbook

c)

Budget

d)

Money log

12.

True or False: Be sure that your WANTS are met first before you set aside money for your NEEDS.

a)

True

b)

False

13.

A series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses

a)

envelopment

b)

envelope

c)

envelope system

d)

envelop

14.

All of the decisions and activities of an individual or family regarding their money, including spending, saving and budgeting, etc.

a)

real money

b)

budgeting

c)

finance

d)

personal finance

15.

Which of the following is NOT a reason to budget?

a)

helps you meet your financial goals

b)

locates where your money is going

c)

prevents you from saving money

d)

sheds light on bad spending habits

16.

A type of irregular income that is based on a percentage of the amount of sales that a person makes?

a)

Budget

b)

Commission

c)

Interest

d)

Emergency Fund

17.

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

d)

Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things

18.

Personal finance is about ________% behavior and ________% head knowledge.

a)

30, 70

b)

20, 80

c)

70, 30

d)

80, 20

19.

A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero

a)

zero

b)

zero-based budget

c)

one-based budget

d)

Living paycheck to paycheck

20.

What is an individuals biggest wealth building tool?

a)

Income

b)

Investment

c)

Debt

d)

Inheritance

21.

Creating a budget is important.

a)

Yes

b)

No

c)

Undecided