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Budgeting

Total questions: 33

Worksheet time: 25mins

Name
Class
Date
1.
What is the first step in budgeting?
a)
Record what you spend
b)
Estimate your income
c)
Set financial goals
d)
Review and evaluate monthly
2.
What does the "M" in SMART stand for?
a)
Mental - you have to be able to think about the goal.
b)
Measurable - a goal must have some kind of number attached so you have a way to know if you are reaching the goal.
c)
Memorable - a goal must be easily remembered
d)
Maximum - there are no limits for goals
3.

Best ways to use leftover cash after you budget is emergency fund and ______________?

a)

Pay off debt

b)

Give it back to your employer as a mistake.

c)

Hide it under your mattress

4.

What percentage should go to Saving?

a)

10% - 20%

b)

25% - 30%

c)

5% - 15%

d)

Whatever is leftover

5.

What are Fixed Expenses?

a)

Expenses that only happen once a year.

b)

Expenses that change every month.

c)

Expenses that stay the same from one month to the next.

d)

Expenses that all Needs

6.
What is the ¨S¨ in SMART Goal?
a)
Small
b)
Separate
c)
Specific
d)
Silly
7.

What are Flexible/Variable Expenses?

a)

Expenses that only happen once a year.

b)

Expenses that change every month.

c)

Expenses that stay the same from one month to the next.

d)

Expenses that all Needs

8.

What is the 50/30/20 Rule?

a)

50 savings/30 needs/ 20 wants

b)

50 wants/ 30 savings/ 20 needs

c)

50 needs/30 wants/ 20 saving

d)

50% groceries / 30% home/ 20% car

9.

What is a zero-based budget?

a)

A budget for those that are on a low income.

b)

A budget where you spend zero on wants.

c)

A budget where every dollar has a name and purpose so the budget ends at zero.

d)

A budget where you start with zero and build your way up.

10.

About how much of your income should go towards transportation?

a)

5-10%

b)

15-20%

c)

25-30%

d)

35-40%

11.

What is an impulse purchase?

a)

A planned purchase

b)

An item bought without previous planning or consideration of the long-term effects

c)

A purchase made when your pulse begins to rise.

d)

A purchase you make at the end of the year to save on taxes

12.
What does the "T" in SMART stand for?
a)
Time-bound - the goal must be reached within a specific length of time.
b)
Thoughtful - a goal must take into account the feelings of others.
c)
Transferable - a goal should be able to be shared with other people.
d)
Trust-worthy - a goal should be worthy.
13.

What is an envelope system?

a)

Envelopes with cash in them to only be used for that budget category.

b)

Envelopes with cash in them that are divided into categories and are used to pay fixed bills.

c)

Envelopes with cash in them that are used to store emergency funds.

d)

Envelopes with cash in them that are used just for those who have irregular incomes.

14.

Jenna wants to decrease the amount of $ she spends on food. Which of the following would help? (hint: choose 2 correct answers)

a)

Decide what she will make for dinner that same day

b)

Go to the grocery store with a list

c)

Go to the store whenever she needs 1-2 items

d)

Keep staple foods (e.g. beans, rice) readily stocked

15.

In the 50-30-20 Budget - you should "Pay Yourself First" by putting AT LEAST __________% of your budget into savings.

a)

20%

b)

30%

c)

50%

d)

None of the above - these don't go in the budget

16.

Which of the following is TRUE about unit pricing?

a)

Unit prices can help you compare the prices of similar items

b)

Unit price labels are universal throughout the country

c)

It's easy to compare quantities on a unit price label

d)

All states require unit price labels

17.
What is a discretionary Income?
a)
an estimate of income and exponditure for a set period of time.
b)
a corporate expense that varries with production output.
c)
Income remaining after deduction of taxes, other mandatory charges.
d)
cannot avoid or help doing something.
18.

In the 50-30-20 Budget - anything that is necessary (needs) for a person to live a healthy life should be __________% of their budget

a)

20%

b)

30%

c)

50%

d)

None of the above - these don't go in the budget

19.
Why do you want to have savings?
a)
financial emergencies
b)
exciting financial opportunties
c)
financial security
d)
all of these
20.

A 18oz box of cereal costs $4.99. How would you calculate the unit price?

a)

18oz / $4.99

b)

9 oz / $2.50

c)

$4.99 / 18oz

d)

(18oz) x ($4.99)

21.
Your emergency savings fund should have how many months worth of income?
a)
1-2 months
b)
10 months
c)
It doesn't matter
d)
3-6 months
22.
Which of the following is an example of a "life change" that would effect your budget?
a)
marriage
b)
children
c)
change in job
d)
all of these
23.
Which SMART Goal component is the following: Austin will save $600.
a)
S
b)
M
c)
A
d)
R
24.
What does the "S" in SMART stand for?
a)
Simple - a goal must be easy.
b)
Smart- a goal must make sense.
c)
Specific - a goal must be focused.
d)
Sample - a goal must be typical.
25.
Jill decides to drive to work instead of taking the bus. It takes her 90 minutes to get there and the bus ride would have been 40.
What type of analysis does this question represent?
a)
Opportunity Cost Analysis
b)
Cost-benefit Analysis
c)
Marginal Analysis
d)
Discretionary Analysis
26.
Which SMART Goal component is the following: Austin will save money for the next two years.
a)
M
b)
A
c)
R
d)
T
27.

Items of value that a person owns

a)

bartering

b)

liabilities

c)

assets

d)

net worth

28.

NSF stands for

a)

non satisfactory financing

b)

not saving fully

c)

non sufficient funds

d)

non surplus funds

29.

Assets - Liabilities =

a)

Net Worth

b)

Share

c)

insolvent

d)

personal inventory

30.

Automatically putting money away into savings before spending on anything else?

a)

Fixed Expenses

b)

Variable Expenses

c)

Pay Yourself First

d)

Cash Flow

31.

In the 50-30-20 Budget - anything that you would like to have (wants) should be NO MORE than __________% of their budget

a)

20%

b)

30%

c)

50%

d)

None of the above - these don't go in the budget

32.

Match the following acronyms with their Agency

a)

FTC

1.

FEDERAL TRADE COMMISSION

b)

CPSC

2.

CONSUMER PRODUCT SAFETY COMMISSION

c)

FDA

3.

FOOD & DRUG ADMINISTRATION

d)

CFPB

4.

CONSUMER FINANCIAL PROTECTIONS BUREAU

e)

BBB

5.

BETTER BUSINESS BUREAU

33.

Match the following Acts with their purpose

a)

Fair Credit Billing Act

1.

Outlines the dispute process to help you fix mistakes on credit cards & revolving charge accounts

b)

Equal Credit Opportunity Act

2.

Makes it illegal for creditors to discriminate against you (race, religion, age, gender, etc.)

c)

Fair Credit Reporting Act

3.

The law regulates the way credit reporting agencies can collect, access, use & share your info

d)

Credit Card Accountability, Responsibility, and Disclosure Act

4.

Protections include: interest rate, fees, billing, payments, and opt-out.

e)

Truth in Lending Act

5.

Requires lenders to disclose information about all charges and fees associated with a loan