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WorksheetsSpending and Budgeting
Total questions: 92
Worksheet time: 46mins
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 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 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
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%
earnings based on a percentage of sales made
commission
variable income
irregular income
net income
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.
Money owed to the business is known as
accounts receivable.
equity.
A _______________ expense is one that remains the same each month.
fixed
variable
periodic
None of these
The computer software that can most effectively help us plan our income and spending is:
PowerPoint
Google Sheets
Acrobat
Word
Budget
Anything that you might incur an expense for
Is a spending plan for managing your money that includes income and expenses
All expenses deducted from income before net pay can result.
Income after all deductions have been paid.
When return on capital is positive, the company i
growing in value.
low on cash.
What type expense does the following statement best match?
Expense for things you don't need
Fixed
Intermittent
Variable
Discretionary
What type expense does the following statement best match?
Expense that remains the same from month to month.
Fixed
Intermittent
Variable
Discretionary
The full amount of our salary is also known as our:
Entire pay
Take home pay
Gross pay
None of these
The finance function would definitely be involved in a decision regarding
public relations and publicity
personal selling
new business projects and strategies
hiring
A spending plan is a tool used to record and ______ projected and actual income and expenses over a period of time
predict
track
eliminate
anticipate
A spending plan is also known as a
(Watch your spelling!)
(a)
Due to the change that comes with various life stages, spending plans must be...
strict
disorganized
complex
flexible
True or False: Any money left over in a budget should be put into savings.
True
False
True or False: A spending plan can only help you prepare for regular expenses.
True
False
A spending plan can reduce stress and increase _____.
confidence
happiness
anxiety
income
One possible consequence of not using a spending plan is a lot of wasted (a) .
Not using a spending plan can leave you unprepared for...
children
college
emergencies
retirement
Before you make a budget, you should spend a couple of weeks doing what?
What is included in someone's personal financial situation?
needs
values
life situation
all of the above
True or False: You need to consider both fixed and variable expenses when creating a budget.
True
False
It is important to review your financial progress and ________ your budget.
exceed
forget
revise
share
What is money received for no exchange, such as a gift?
Earned income
Unearned income
________ expenses occur every period and are typically about the same amount.
Fixed
Variable
Negative cash flow typically results in (a) .
(Watch your spelling!)
How can you reduce negative cash flow?
Use coupons
Carpooling
Eat out often
Both A and B
In a typical budget, what percentage should be set aside for utilities?
10%
20%
30%
40%
In a typical budget, what percentage should be set aside for transportation?
10%
20%
30%
40%
What tools can help in budgeting?
An envelope system
Computer programs
Paper tracking
All of the above
When using the envelope system, transaction details are recorded on the _______ of the envelope.
inside
outside
When the envelope is empty, what happens?
Which computer program is an example of a budgeting tool?
(Watch your spelling!)
(a)
How often should budgets be re-evaluated?
Daily
Weekly
Monthly
Yearly
What are some examples of a "larger purchase?"
home
car
clothing
both A and B
Financial (a) is achieved by reducing spending, earning more, saving more, and avoiding negative cash flow.
Which of the following is a benefit of using a budget?
Helps to keep track of the money you receive
Helps to prioritize your spending
Helps reach short- and long-term financial goals
All of the above
Which of the following should NOT be considered when setting a current budget?
Your financial goals
Needs and wants
Savings
Future income
___________ are good places to look to find your current expenses when building your budget.
Banks and credit unions
Grocery stores and concerts
Bank and credit statements
Online research websites
Bank statements, credit statements, and records of cash expenses help you to estimate your ________.
emergency fund needs
credit score
expenses
available investments
In addition to needs, what should you plan for first when creating a budget?
Possible charitable donations
Shopping money
Investments
Recurring expenses
In your budgeting process, when should you look at recurring expenses?
Before reviewing your wants
After considering entertainment expenses
Before looking at your needs
After your wants but before you needs
Which of the following is a way to track your spending?
Envelop method
Spreadsheet budget
An app
All of the above
Which of the following is NOT a good way to track your spending?
In your head
Notebook and pencil
Envelope Method
Online software of app
Which of the following is NOT true about emergency funds?
They are used for anything listed on the budget.
They can keep you from borrowing money from friends and family.
They help you prepare for unexpected expenses.
They help remove the worry about expenses not in the budget.
When setting a budget, you can choose to make room for: (choose all that apply)
Financial goals
Entertainment expenses
Tithing
Charitable Donations
Charitable donations, entertainment expenses, and financial goals are all examples of...
activities that contribute to overspending.
things that are considered needs
activities that are necessary for a healthy lifestyle.
things to consider when creating a budget.
Unexpected expenses…
can make it hard to stick to your budget.
may cause you to be unable to pay necessary bills.
should be planned for.
all of the above.
Which of the following expenses would be a good reason to spend money from an emergency fund?
Repair your laptop that you use for homework.
Upgrade your phone to the latest model.
Buy new track shoes because they’re in style.
Purchase concert tickets to see your favorite artist.
An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for…
spending money from your “rent” envelope.
emergency fund spending.
tracking all of the money you spent in a month.
getting an extra job so you can have money to cover that expense.
How can you ensure you don't go over your budget?
Round up your expense estimates to add a buffer
Use most of your budget for entertainment expenses
Find a friend that enjoys going shopping
Buy all of your wants at one time.
Tracking your spending can help you _____.
spend more money
make good decisions
know where your money is being spent
spend less money
Why is saving money important?
Saving money can help you meet goals
It’s important to show off how much money you have.
It’s important to fill your money jar.
Saving money is important for spending
Keeping track of what you earn, spend, and save are the key parts of a _____.
monthly allowance
investment strategy
paycheck
budget
Which of the following is not included into spending plan?
transportation
candy bars
entertainment
clothing
Saving provides money for...
daily need
lunch
entertainment
unplanned expenses
Why is it important to save money?
to waste it
to be prepared for future needs
to buy useless items
What can you do to help you save money?
Get a piggybank
Spend all of your money
Do nothing
What is the most important thing to spend on?
Education
Current popular item
The newest gadget
Which of the following costs would be the MOST difficult to adjust is you were looking to reduce your expenses?
Eating out
buying new clothing
car payment
Setting financial goals can help you create a budget by helping you determine.....
your needs
your wants
your priorities
your needs, wants and priorities
Why is it helpful to track your spending for 2 months?
You can receive higher interest rates for your savings account when you can show how you spend your money
You can receive special discounts at certain stores when you can show how you spend your money
To identify your spending patterns and then prioritize your needs, wants, and savings goals
To eliminate all spending on your wants
Which of the following was NOT one of the budgeting strategies you learned about?
50/30/20
Pay Yourself First
Powerful Methods
True or False: A budget can help you identify any bad spending habits.
True
False
Which of the following is NOT a strategy you can use to save money on groceries?
use a small cart
listen to music while shopping
go shopping when you are hungry
make a list
Which of the following are variable expenses (amount can change from month to month)
car payment
entertainment
car insurance
monthly rent
Which of the following is considered a need?
a new car
clothes dryer
a place to sleep
lunch at a local restaurant
For a budget to be balanced
income must equal expenses
unlimited spending is permitted
income is not considered
expenses are not considered
Items for which you must spend money are called
net worth
expenses
assets
income
The amount you budgeted to spend on food for June was $500. The amount you actually spent was $455, resulting in
$45 extra
$55 extra
$45 shortage
$55 shortage
Examples of income include which of the following
paychecks
gift money
allowance
all of the choices
A ______________ details exactly how you're going to use your money to pay for things you want and need.
Income plan
Asset plan
Budget
money plan
The amount of income you planned for June was $1,500. The amount you actually received was $1,300 resulting in
$200 extra
$200 shortage
$300 shortage
$300 extra
Which of the following are things to budget when owning a car?
Maintenance and Repairs
Gas
Insurance
All of these are important to budget
