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Worksheets

Budgeting

Total questions: 24

Worksheet time: 14mins

Name
Class
Date
1.

Expenses that do not change are considered to be...

a)

fixed expenses

b)

variable expenses

c)

irregular expenses

2.

Costs that change over time are known as...

a)

variable expenses

b)

regular expenses

c)

fixed expenses

3.

Income earned prior to taxes and other deductions

a)

net income

b)

variable income

c)

gross income

d)

rate income

4.

The amount of money you bring home after taxes / deductions

a)

net pay

b)

variable pay

c)

gross pay

d)

rate pay

5.

Which among the following would represent a budget that is balanced?

a)

income is greater than or equal to expenses

b)

expenses is greater than or equal to income

c)

gross income earned matches net income

d)

tax deductions match the total revenue spent

6.

Liabilities are...

a)

anything you owe such as expenses.

b)

your net worth prior to deductions.

c)

the costs that are automatically removed from your paycheck

d)

sources of income

7.

something that is necessary for a person to live a healthy life

a)

mad money

b)

wants

c)

needs

d)

revenue

8.

something desired but not necessary in order to live a healthy life

a)

revenue

b)

needs

c)

wants

d)

variables

9.

An example of a fixed expense is:

a)

clothing

b)

auto insurance

c)

an electric bill

d)

educational expenses

10.

_____ is commonly considered a

flexible or variable expense.

a)

rent

b)

mortgage payment

c)

home insurance

d)

entertainment

11.

An example of a long-term goal would be:

a)

an annual vacation.

b)

saving for retirement.

c)

buying a used car.

d)

completing college within the next six months.

12.

A(n) _______________ is an estimate of income and expenses for a set period of time.

a)

variable

b)

interest rate

c)

exchange rate

d)

budget

13.

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

14.

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

a)

License and Registration fees

b)

Gasoline

c)

Utilities

d)

Insurance

15.

When making a budget, a person’s needs should come before their wants.

a)

True

b)

False

16.

If an expense can be cut from your budget to save money, it is considered a ______.

a)

want

b)

need

c)

income

d)

savings

17.
Which of the following is an example of a variable expense
a)
Food
b)
Rent
c)
Car payment
d)
Student loan
18.

8.The money an individual spends regularly for items or services.

a)

Budget

b)

Expense

c)

Checking Account

d)

Financial Plan

19.
Why is budgeting important?
a)
It's good to live pay check to paycheck
b)
You should always live at your parents house
c)
You might get into a house or other large expense  you can’t afford
d)
Always spend more than you can afford
20.

Fixed or variable expense: Groceries

a)

Fixed

b)

Variable

21.

Car Payment is an example of what: a fixed expense or a variable expense?

a)

Fixed Expense

b)

Variable Expense

22.

Which among the following correctly shows the 50 / 20 / 30 rule of budgeting?

a)

50% savings

20% everything else

30% essentials

b)

50% essentials

20% savings

30% everything else

c)

50% everything else

20% savings

30% essentials

d)

50% essentials

20% everything else

30% savings

23.

A(n) __________ is an estimate of income and expenses for a set period of time.

a)

revenue

b)

stock

c)

variable

d)

budget

24.
Money earned through employment and investments
a)
budget
b)
expense
c)
income
d)
debt