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Worksheets

Budgeting

Total questions: 32

Worksheet time: 24mins

Name
Class
Date
1.

Which of the following is a benefit of using a budget?

a)

All answers are correct

b)

Helps to keep track of the money you receive

c)

Helps to prioritize your spending

d)

Helps reach short-and long-term financial goals

2.

Why is using a budget beneficial?

a)

Helps to keep rack of the money you receive

b)

Helps to prioritize your spending

c)

Helps reach short-and long term goals

d)

All answers are correct

3.

Where should you look to find your current expenses when building your budget?

a)

Bank and credit statements

b)

ask your parents

c)

your wallet

d)

your bank representative

4.

Bank statements, credit statement, and records of cash expenses help you to estimate your__________.

a)

expenses

b)

credit score

c)

emergency fund needs

d)

available investments

5.

The envelope method, notebook and pencil, and online software are all methods of ______.

a)

estimating your unexpected expenses

b)

tracking your spending

c)

understanding your current expenses

d)

planning for your future

6.

Which of the following expenses would be a good reason to spend money from an emergency fund?

a)

Upgrade your phone to the latest model.

b)

Buy new track shoes because they're in style.

c)

Repair your laptop that you use for homework.

d)

Purchase concert tickets to see your favorite artist.

7.

In your budgeting process, when should you look at recurring expenses?

a)

After considering entertainment expenses

b)

Before looking at your needs

c)

After your wants but before you needs

d)

Before reviewing your wants

8.

Charitable donations, entertainment expenses, and financial goals are all examples of.....

a)

things to consider when creating a budget

b)

activities that contribute to overspending

c)

things that are considered needs.

d)

activities that are necessary for a healthy lifestyle

9.

This helps you prepare for unexpected expenses.

a)

Credit Cards

b)

Emergency fund

c)

Checking Account

d)

None of the answers are correct

10.

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

11.
Examples of Fixed Expenses include:
a)
Mortgage, loans, rent
b)
Cable, entertainment, food
c)
Gas, food, phone
d)
Clothing, gas, food
12.

A financial plan is called a

a)

budget

b)

tax

c)

allowance

d)

income

13.

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

a)

want

b)

need

c)

income

d)

savings

14.

A 9th grader makes and sells earrings as a way to earn extra money. The money she gets is considered _______.

a)

income

b)

needs

c)

outflow

d)

wants

15.

Of all the choices, which one should you budget for first?

a)

Groceries

b)

Entertainment

c)

Cell Phone Bill

d)

New Car

16.

What is the first rule of financial literacy?

a)

Spend your money - you earned it.

b)

Always put your money in a safe place.

c)

Never lend money to friends.

d)

Pay yourself first.

17.

Which of the following are reasons to create a budget? You may select more than one response.

a)

Plan for a financial goal.

b)

Be able to spend all your money.

c)

Help pay off debt.

18.

What is a budget?

a)

An estimate of how much money people will give you.

b)

An estimate of how much money you will earn and how much you will spend.

c)

An estimate of how much money you will give to charity.

19.

Which of the following is an example of a variable expense?

a)

Rent

b)

Food

c)

Car payment

d)

Health insurance

20.

What is the first step in creating a budget?

a)

Calculate how much money you spend.

b)

Calculate how much money you like to donate to charity.

c)

Calculate how much money you owe others.

d)

Calculate how much money you earn.

21.

Can a budget ever be changed?

a)

Yes, you can change it whenever you want.

b)

No, you can never change a budget.

c)

Yes, you can change it if something happens that affects your income or expenses.

22.

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...

a)

Cell phone plan

b)

Rent

c)

Clothing

d)

Electricity bill

23.

What is income?

a)

The money that you earn

b)

The money that you spend

c)

Making a withdrawal

d)

Making a phone call

24.

Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

a)

Will something bad happen if I don't have this?

b)

Do any of my friends have this item?

c)

How happy will this item make me?

d)

Will my teachers be excited if I buy this item, or will they be disappointed?

25.

What is gross pay?

a)

The money that you earn before taking out deductions

b)

The money that you earn after taking out deductions

26.

What is net pay?

a)

The money that you earn before taking out deductions

b)

The money that you earn after taking out deductions

27.

Justine's part-time job pays her $8 per hour. She works for 10 hours this pay period. How much is her gross pay?

a)

$8.00

b)

$80.00

c)

$80.00, minus any taxes she has to pay

d)

$80.00, plus any taxes she has to pay

28.

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?

a)

$50.00

b)

$200.00

c)

$250.00

d)

$450.00

29.

Why should you use your NET pay when creating a budget?

a)

Your net pay will always be higher, so you'll have more money to spend

b)

Your net pay is a more accurate picture of how much money you have available to spend or save

c)

Your employer knows what your gross pay is, but you only know what your net pay is

d)

Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget

30.

Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?

a)

50% needs, 30% wants, 20% savings

b)

50% budget, 30% needs, 20% wants

c)

50% saving, 30% needs, 20% wants

d)

$50 needs, $30 wants, $20 savings

31.

What is a tradeoff?

a)

Something you gain or lose when making a decision

b)

A way of making money

c)

A way to save money

d)

A way to spend money

32.

A paycheck consists which of the following? (Select two)

a)

Check

b)

Paystub

c)

Permission slip form

d)

Waiver form