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Budgeting Review

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.
Preparing a budget includes
a)
Income, Expenses, Saving
b)
Only listing your expenses
c)
Only listing your debts
d)
Only listing your income
2.
Examples of Fixed Expenses include:
a)
Mortgage, loans, rent
b)
Cable, entertainment, food
c)
Gas, food, phone
d)
Clothing, gas, food
3.

Utilities would be an example of

a)
Fixed Expenses
b)
Variable Expenses
4.

Gas would be an example of a

a)
Fixed Expense
b)
Variable Expense
5.

Car Insurance would be an example of a

a)
Fixed Expense
b)
Variable Expense
6.

The amount an employee earns once taxes and other items are deducted from his or her gross pay.

a)

Budget

b)

Debt

c)

Gross Income

d)

Net Income

7.

Fees incurred when a customer withdraws more money from an account than what is available in the account.

a)

Debt

b)

Budget

c)

Gross Income

d)

Overdraft fees

8.

The total amount of money an individual has earned before taxes are taken out.

a)

Net Income

b)

Checking Account

c)

Gross Income

d)

Overdraft

9.

Which of the following describes wants?

a)

Necessary items for life that are paid monthly/yearly such as food, housing, transportation, utilities, insurances

b)

Expenses that equal all the fixed and variable expenses added together

c)

Things or tems that a person would like to own or purchase that is not necessary for life; Ex. entertainment, video games, etc.

d)

Income from all possible sources

10.

What is the cost of living index used for?

a)

To compare how much people earn in different cities

b)

To compare living cost and the purchasing power in two or more cities.

c)

To compare different tax bracket.

d)

To compare how much insurance do you need in certain city.

11.
Career assessments help to identify:
a)
the job an individual should have is he/she wants high well-being
b)
possible career areas related to one's interests
c)
positions available in a particular occupation
d)
fastest and slowest growing careers in a particular occupation
12.

Which words do NOT apply to the Gig Economy?

a)

short-term contracts

b)

permanent employment

c)

independent contractor

d)

freelancer

13.

What are the advantages of being a gig worker?

a)

redundancy payments

b)

national minimum wage

c)

paid holidays and sick leave

d)

flexible hours

14.

If you are following the 50/30/20 Rule, and your net pay is $3,000 a month. What amount should you put in savings?

a)

$200

b)

$600

c)

$1500

d)

$900

15.

In a zero-based budget, if you have money left over, where would be the best place to put it?

a)

discresionary expenses

b)

savings and/or debt repayment

c)

dining out category

d)

transportation

16.

The Cost of Living Index is based on what number as being the average cost of living across the United States?

a)

10

b)

50

c)

100

d)

1000

17.

The Cost of Living Index for San Francisco, California is 244. What does this tell you about this city.

a)

It is significantly cheaper than most cities

b)

You could expect to live comfortably here

c)

It is significantly more expensive than most cities in the US.

d)

You are guaranteed to make a high salary if you live here

18.

North Carolina has a Cost of Living Index of 91. This means that, on average

a)

It is cheaper to live in North Carolina than other states

b)

It is more expensive to live in North Carolina than other states

c)

Living in North Carolina would cost relatively the same as any other state

19.

We may think it is expensive to live in Charlotte, NC even though its Cost of Living Index is 99.7 (slightly below average). Why is that?

a)

Because it is generally expensive wherever you live in the US.

b)

Because NC's average Cost of Living is only 91.

c)

Because Charlotte is by far the largest city in North Carolina.

20.

When budgeting monthly for car expenses, you should include which of the following?

a)

gas

b)

insurance

c)

foreseen and unforeseen maintenance

d)

all of these

21.

Which of the following car expenses would be considered non-recurring?

a)

gas

b)

insurance

c)

oil change

22.

What is the Unit Price of a 5-lb bag of sugar, if the bag cost $2.00

a)

$2.00

b)

$0.40

c)

$0.50

d)

$10.00

23.

Fruit juice is sold in a 64 oz. carton for $1.78, or in a 96 oz. carton for $2.99. Which one is a better value?

a)

The 64-oz. carton

b)

The 96-oz. carton

c)

They are relatively the same cost.

24.

"Pay yourself first" refers to the fact that you should

a)

focus on your wants first, to improve your mental health

b)

you should over-budget for variable expenses

c)

you should think of savings as a "bill" that should be paid before anything else

d)

that you should focus equally on your necessary and discretionary expenses

25.

Median salaries for most occupations are lower in North Carolina, compared to the national average, because

a)

We pay less taxes

b)

We have a lower cost of living compared to the rest of the country

c)

NC companies historically underpay their workers

d)

North Carolinians are generally less skilled than the average American worker

26.

Replacing a water heater, would most likely be considered what type of expense?

a)

fixed

b)

recurring

c)

non-recurring

d)

whammy

27.

Jeremy is a freelance social media specialist. Companies can hire him to improve their social media presence. Why is it particularly important that Jeremy and other freelancers like him, have an emergency fund?

a)

Freelancers charge a very low hourly rate, so Jeremy probably doesn't get paid much

b)

Jeremy doesn't have guaranteed work every day, so he needs money in case he goes a while between clients

c)

Jeremy will need a large emergency fund in order to make his monthly insurance payments

d)

Jeremy's job requires a lot of expensive specialty equipment that will always need replacing

28.

You're considering moving into a 3-bedroom apartment with two roommates, rather than living on your own after graduating. Which of your expenses would likely decrease by having roommates?

a)

groceries and eating out

b)

rent

c)

cell phone bill

d)

bedroom furniture

29.

If you are following the 50/30/20 budgeting rule, and take home $2,500 a month. You should try to spend no more than what amount on your wants?

a)

$1,250

b)

$750

c)

$500

d)

$250

30.

You're putting together your first post-graduation budget. Your net pay is $3,000 per month and you estimate your monthly expenses will be $3,125. How would you describe your budget?

a)

You have a surplus of $125

b)

You have a deficit of $125

c)

You have a surplus of $3,125

d)

Your estimates are close enough to your take-home pay to be considered "on budget"