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WorksheetsBudgeting
Total questions: 21
Worksheet time: 22mins
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
5 years
Which of the following is a sign that you have a budget deficit?
Your savings account balance grows every month.
You overdraw your checking account on a consistent basis (with a $34 cost per overdraft).
Your checking account balance grows every month.
You pay more than the minimum monthly loan payment towards your student loans.
Greg is trying to decide whether he needs a car or not when he moves to the city. Which of the following would convince Greg to get a car rather than use public transportation?
There are several public transportation routes between Greg's apartment and work.
The cost of public transportation is less than Greg’s monthly car payment.
Greg’s company covers half the cost of his monthly public transportation pass.
Using public transportation, Greg’s commute to work one-way is two hours.
Which of these boxes of cereal has the LOWEST unit price?
Cereal A, which costs $3.20 for a 16 oz. box.
Cereal B, which costs $5.00 for a 32 oz. box.
Cereal C, which costs $2.50 for a 10 oz. box.
Cereal D, which costs $4.50 for an 8 oz box
You are putting together your first post-graduation budget. Your take-home pay will be $2,500 per month. You estimate your monthly costs to be rent of $900, car related expenses to be $550, entertainment of $200, food expense of $250, cable bill of $75, mobile phone of $100, student loan payment of $400 and other expense of $150. How would you describe your budget after analyzing all of your income and expenses?
You have a surplus of $125
You have a deficit of $125
You have a deficit of $2,625
You have a surplus of $2,500
Which of the following is a BAD budgeting strategy to use if you want to save money at the grocery store?
Prepare a grocery list before you go to the store, and avoid buying items that aren’t on the list.
Build a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat.
When comparing similar products, focus on the price only.
When comparing similar products, be sure to compare based on unit price.
John wants to buy a car and is trying to decide whether he wants to accept a pre-qualified auto loan from his credit union or if he wants to directly finance the car from the dealership. What should he do?
Finance the car directly with the dealership since they always have better interest rates.
Finance the car with the credit union - since they’re a local organization, they always have the customers’ best interests at heart.
Compare the two offers and choose the one with the longest term so that he has more time to pay it off
Compare the two offers and choose the one through which he’d pay the least amount of money overall.
You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Mark which of YOUR expenses would likely decrease by having roommates.
Groceries and eating out
Rent
Cell phone bill
Bedroom furniture
Danaisha does all her grocery shopping at organic markets and has a monthly grocery bill of $325. Charles says that Danaisha is wasting her money on wants instead of focusing on needs. He buys in bulk, uses coupons, and shops at Save-More for a monthly bill of $195. Who's budgeting correctly for food?
Danaisha, because she is focusing on her health, which will have a guaranteed payoff in the long run.
Charles, because he's taking efforts to save money by focusing on his needs only.
Both, because needs vs wants are determined on an individual basis.
Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Danaisha should cut her spending.
Ming is excited to start looking for an apartment. She knows that you just learned about renting an apartment and gives you a list of steps she thinks she should take to find the right fit for her. Which of the following steps would you recommend she can SKIP when doing her INITIAL research?
Ask the leasing office what color the room is painted to make sure that she is comfortable with the look and feel of the room
Find out if she would be living with roommates, and if so, how many
Research the cost of utilities
Find out how long it would take her to go to work and other places she goes to frequently
Franny is a recent college graduate with little budgeting experience. She is trying to stick to her budget but is finding that she continues to have a deficit at the end of each month. Which of the following steps she takes could explain why this keeps happening?
Franny uses her net pay when budgeting her money.
Franny uses the 50-20-30 rule to allocate her money.
Franny tracks her monthly spending at the end of the month.
Franny has identified her needs and wants.
Joanne is buying a new car for the first time and wants to make sure she does everything she can do to minimize the overall cost. Which of the following will help her the MOST?
Putting an extra $50 towards her down payment
Lowering her interest rate from 4% to 2%
Increasing her loan term from 60 months to 84 months
Getting an upgraded model of the car in the same class
Which of the following explains why it might be a good idea to buy an item in a smaller size with a HIGHER unit price instead of buying it in bulk at a LOWER unit price?
You have a large apartment with plenty of space for storage.
You have a roommate who’d like to share the item because she likes it too.
You needs lots of this item and go through it quickly.
You don’t plan on using this item too often, and it’ll go to waste if you have it for too long.
Janine is considering what auto costs she is going to have after buying a new Honda Civic. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership?
Yes, these are the three costs she should expect to pay once she is a car owner.
No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.
No, she needs to factor in other costs such as maintenance, emergency repairs, etc.
No, she does not need to include the cost of gas as it is covered under her auto insurance policy.
Grace is buying a new car and wants to negotiate with the dealership to bring the price down. Which of the following strategies will help Grace the MOST?
Walk into the dealership, state her desired price for the car, walk out and wait for the salesperson to say “yes” or “no”.
Come to the dealership with a pre-qualified loan in hand from her bank so that she can negotiate the terms of a loan through the dealership.
Say the name of a pricing guide like “Edmunds” or “Kelly Blue Book” while speaking with the salesperson to show them that she’s done her research.
Shop at just one dealership so that she can talk to multiple salespeople there to see who will give her the best deal.
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
Which of the following might you pay WHEN you sign your lease?
Finders Fee
Security Deposit
Renter's Insurance
Parking Fee
According to a rule of thumb, rent shouldn't take up more than ___ % of your take-home pay.
10-12%
5-7%
25-30%
15-20%
Jenna wants to decrease the amount of $ she spends on food. Which of the following would help? (hint: choose 2 correct answers)
Decide what she will make for dinner that same day
Go to the grocery store with a list
Go to the store whenever she needs 1-2 items
Keep staple foods (e.g. beans, rice) readily stocked
Which of the following is TRUE about unit pricing?
Unit prices can help you compare the prices of similar items
Unit price labels are universal throughout the country
It's easy to compare quantities on a unit price label
All states require unit price labels
A 18oz box of cereal costs $4.99. How would you calculate the unit price?
18oz / $4.99
9 oz / $2.50
$4.99 / 18oz
(18oz) x ($4.99)
