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Budgeting Quiz

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

Why is it important to be able to decide if an item is a NEED or a WANT?

a)

You cannot create a budget that has both needs and wants included -- you need them each in a separate budget

b)

Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them

c)

Needs are worth spending money on, but you should never spend on a want

d)

When you budget, you should make sure all your needs are met first, then you can decide to spend on wants

2.

Katie 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% saving, 30% needs, 20% wants

c)

50% budget, 30% needs, 20% wants

d)

$50 needs, $30 wants, $20 savings

3.

How much money has this employee paid in deductions during this pay period?

a)

$692.24

b)

$50.00

c)

$0

d)

$15,921.52

4.

Creating a budget can make you feel powerful! Why?

a)

You can't really budget unless you have an important job, which means that other people look up to you

b)

People who budget earn more money, so they can live a better life

c)

A budget puts you in control of your spending and saving, so you make good decisions and feel more confident

d)

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

5.

The two main portions of a budget are...

a)

the money coming in (expenses) and the money you're spending (income)

b)

the money coming in (income) and the money you're spending (expenses)

c)

the cash you are spending in stores and the bills you are paying online

d)

the items you want to buy and the money you need to save for retirement

6.

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

b)

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

c)

Do any of my friends have this item?

d)

How happy will this item make me?

7.

James has just moved into his own apartment and is working full time. Each item below would go into his budget in the "Monthly Bills" category EXCEPT...

a)

Clothing

b)

Cell phone plan

c)

Rent

d)

Renters insurance

8.

Three of these items represent services provided by the federal government using taxpayer money. Which one represents a personal expense instead?

a)

Military protection

b)

Auto insurance

c)

NASA space program

d)

Medicare and Medicaid

9.

How much money has this employee earned in gross pay this pay period?

a)

$46,000.00

b)

$1,307.76

c)

$2,000.00

d)

$30,078.48

10.

Kevin is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Kevin?

a)

He loves watching movies, and he's already paid for all the streaming services, so now he needs the data

b)

He has so many social media accounts, and he needs to be able to check them throughout the day, even while in school

c)

He has an hour-long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online

d)

Unlimited data will allow him to play video games with his friends even when he's not at home, and he LOVES video games

11.

Jordan 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

b)

$1000

c)

$300

d)

$20

12.

Complete this sentence: The federal government budgets its tax money on three large buckets of expenses -- mandatory spending, discretionary spending, and .....

a)

budget funds

b)

interest on debt

c)

free programming

d)

the Constitution

13.

Who has to pay taxes to the US government?

a)

Anyone who owns a home or attends a public school

b)

Every citizen, regardless of their age or working status

c)

Every person or company that earns income in the US

d)

No one has to - taxes are a voluntary program

14.

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

a)

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

b)

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

c)

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

d)

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

15.

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

a)

$80, plus any taxes she has to pay

b)

$8

c)

$80, minus any taxes she has to pay

d)

$80