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Budget

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

The following are guidelines for budgeting with an irregular income except:

a)

Prioritize the list in order of importance.

b)

Make a list of all of your expenses for the month ahead.

c)

Budgeting with an irregular income is no different.

d)

When your check comes in, spend your money all the way down the list.

2.

Which of the following is not a record-keeping feature you could expect from your bank?

a)

An account register

b)

A reconciliation sheet

c)

Customer service reconciles your account

d)

A monthly account statement

3.

Budgeting is crucial to your financial success.

a)

True

b)

False

4.

Having more than one bank account is never a good idea since it can complicate money management.

a)

True

b)

False

5.

The zero-based budget is the best method of budgeting because:

a)

It ensures every dollar you make is assigned a specific purpose

b)

It requires less discipline

c)

It allows less money for wants

d)

It is less complicated than other types of budgets

6.

The envelope system works great for managing spending on things that don’t normally have a FIXED monthly expense.

a)

True

b)

False

7.

Which of the following statements is false?

a)

A cash flow statement summarizes all of the income and outgo (spending) over a certain time period.

b)

A budget is a written plan for saving and spending.

c)

A budget is meant to summarize the saving and spending that has taken place over the past year.

d)

The cash flow statement is reflective of what has already taken place.

8.

Non-essential expenses.

a)

Discretionary

b)

Intermittent

9.

Which of the following is a consequence of overdrawing your checking account?

a)

Bounced check fee from the store

b)

Stress from money mismanagement

c)

Overdraft fee from your bank

d)

All of the above

10.

Groceries are a:

a)

Variable expense

b)

Discretionary expense

11.

ʺPay yourself firstʺ means you should assign a portion of your income to saving and investing every month.

a)

True

b)

False

12.

Doing a budget does not:

a)

Show if you are overspending in an area

b)

Make overspending more likely

c)

Make your money go further

d)

Remove guilt and shame associated with an impulse purchase

13.

Setting up automatic account transfers is the easiest way to build your savings for your emergency fund or large purchases.

a)

True

b)

False

14.

A written budget, if followed, removes _________ from your finances.

a)

Overspending

b)

Guilt

c)

Management by crisis

d)

All of the above

15.

To match your bank statement with your checkbook:

a)

Cash flow plan

b)

Reconcile

16.

Series of envelopes divided into categories and used to store cash for planned monthly expenses.

a)

Budget

b)

Check carbon

c)

Register

d)

Envelope system

17.

Percentage of Americans living paycheck to paycheck:

a)

25%

b)

70%

c)

50%

d)

40%

18.

Your own record of all your transactions.

a)

Statement

b)

Register

19.

If you write a zero-based budget every month, it is not necessary to reconcile your account.

a)

True

b)

False

20.

Occurs when money is withdrawn from a bank account and the available balance goes below zero.

a)

Overdraft

b)

Balance

21.

A written cash flow plan.

a)

Personal finance

b)

Budget

22.

Your monthly budget should include:

a)

Fixed expenses

b)

Variable expenses

c)

Discretionary expenses

d)

All of the above

23.

Car repairs are a:

a)

Intermittent expense

b)

Fixed expense

24.

A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero.

a)

Zero based

b)

Zero spending

25.

Expenses that remain the same from month to month.

a)

Variable

b)

Fixed

26.

Which of the following account records would have the most current balance?

a)

Account balance statement from the ATM

b)

Your monthly bank statement

c)

Your own account register

d)

All of the above

27.

Writing and following a zero-based budget will help you avoid overspending and impulse purchases.

a)

True

b)

False