WorksheetsBudgeting Review (9.1-9.4)
Total questions: 32
Worksheet time: 1hrs 4mins
Which of the following are TRUE about gross income and net income? (hint: choose 2 correct answers)
Gross income and net income are the same
Net income is sometimes called "take home pay"
Gross income is the total amount earned before deductions
Net income is the total amount earned before deductions
How does the 50/30/20 rule of thumb for budgeting allocate your income?
50% Needs, 30% Wants, 20% Savings & Debt Repayment
50% Wants, 30% Needs, 20% Savings & Debt Repayment
50% Savings & Debt Repayment, 30% Wants, 20% Needs
50% Needs, 30% Savings & Debt Repayment, 20% Wants
Which of the following is an example of buying something you NEED?
"I want to replace something that is no longer working."
"I want to impress someone/ change how they feel about me."
"I'm feeling down, and I need to boost my spirits."
"I don't want to miss out on these deals during the sale!"
Which is NOT a good method of keeping track of your expenses in a month?
Using an app like Mint
Using a spreadsheet
Using your debit/credit card statements
Using your memory
Which of the following can be categorized as a WANT?
Housing
Entertainment
Transportation
Food
Which of the following is used to calculate wealth?
Assets - Debts
Debts - Assets
Income - Debts
Income - Assets
Assets - Income
Which is NOT an important reason you need a budget?
A budget helps you figure out your long-term goals and work towards them.
It Helps Ensure You Don't Spend Money You Don't Have
You want to be the coolest kid on your street
It Helps You Prepare for Emergencies
Building a budget forces you to take a close look at your spending habits.
Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?
Dining out at local restaurants
Loan payment on a new car
Expenses for new clothes
Postponing a purchase for a big-screen TV
You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You then set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?
6 months
1 year
2 years
3 years
Creating a budget can make you feel powerful! Why?
People who budget earn more money, so they can live a better life
A budget puts you in control of your spending and saving, so you make good decisions and feel more confident
You can't really budget unless you have an important job, which means that other people look up to you
Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things
Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...
Cell phone plan
Rent
Clothing
Renters insurance
The two main portions of a budget are...
the money coming in (income) and the money you're spending (expenses)
the money coming in (expenses) and the money you're spending (income)
the cash you are spending in stores and the bills you are paying online
the items you want to buy and the money you need to save for retirement
Why is it important to be able to decide if an item is a NEED or a WANT?
Needs are worth spending money on, but you should never spend on a want
Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them
You cannot create a budget that has both needs and wants included -- you need them each in a separate budget
When you budget, you should make sure all your needs are met first, then you can decide to spend on wants
Justine's part-time job pays her $8 per hour. She works for 10 hours this pay period. How much is her gross pay?
$8
$80
$80, minus any taxes she has to pay
$80, plus any taxes she has to pay
Brandon receives his paycheck, and it says his gross pay is $250 and his net pay is $200. How much money did he have in deductions this pay period?
$50
$200
$250
$450
Why should you use your NET pay when creating a budget?
Your net pay will always be higher, so you'll have more money to spend
Your net pay is a more accurate picture of how much money you have available to spend or save
Your employer knows what your gross pay is, but you only know what your net pay is
Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget
Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?
50% needs, 30% wants, 20% savings
50% budget, 30% needs, 20% wants
50% saving, 30% needs, 20% wants
$50 needs, $30 wants, $20 savings
The zero-based budget is the best method of budgeting because:
this type of budget is less complicated than other types
a zero-based budget allows less money for wants
sticking to a zero-based budget requires less discipline
the zero-based budget ensures that every dollar you make is assigned a specific purpose
Budgeting is crucial to your financial success
False
True
"pay yourself first" means you should assign a portion of your income to saving and investing every month
True
False
What should you do before you sign your lease?
Read the fine print
Pay your deposit
Plan your house warming party
Start buying furniture
Which is NOT a clause you should worry about in your lease according to the "Apartment Hunting 101" video?
Sublet
Pets
Quiet Hours
Roommates
When should you pay your deposit for your apartment?
Before you sign the lease
After you sign the lease
Never, find a place with no deposit!
What is a deposit?
