Free Printable Budgeting Review

Worksheets

Budgeting Review

Total questions: 26

Worksheet time: 36mins

Name

Class

Date

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

Dining out at local restaurants

Loan payment on a new car

Expenses for new clothes

Postponing a purchase for a big-screen TV

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?

6 months

1 year

2 years

3 years

If you are trying to substantially reduce the amount you spend on food, you should try...

Cooking your own food at home for as many meals as possible

Dining at restaurants more often so you don't waste water doing dishes

Eating more snacks on the go and way fewer meals at home

Drinking more coffee and soda so you are not as hungry for food

Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

Average rent for an apartment

Food and grocery store options in the area

Employment opportunities

Average cost of Uber, Lyft, or taxi fare

Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?

There are several public transportation routes between Greg's apartment and work

The cost of public transportation is less than Greg’s monthly car payment

Greg’s company covers half the cost of his monthly public transportation pass

Using public transportation, Greg’s commute to work one-way is two hours

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

All of the following are good budgeting strategies if you want to save money at the grocery store, EXCEPT…

Focusing on unit price when comparing similar products

Building a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat

Focusing only on the price when comparing similar products

Preparing a grocery list before you go to the store and avoiding buying items that aren’t on the list

Which description is most accurate for a Zero-Based Budget?

You put every dollar of your net pay into a budget category each month

You spend your checking account balance down to $0 every month

You spend your saving account balance down to $0 every month

You pay every one of your debts down to $0 every month

For two months in a row, Aaron realizes he has a budget deficit of roughly $175. Which of these options makes the most sense for him to fix his problem?

Cancel one of his streaming video subscriptions and go out to dinner three fewer times each month with friends

Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing

Contribute $100 less to savings each month and $75 less to his retirement fund

Sell his current car and get a less expensive vehicle

10.

You're considering moving into a 3-bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates?

Groceries and eating out

Rent

Cell phone bill

Bedroom furniture

11.

Danaisha does all her grocery shopping at organic markets and has a monthly grocery bill of $325. Charles says that Danaisha is wasting her money on wants instead of focusing on needs. He buys in bulk, uses coupons, and shops at Save-More for a monthly bill of $195. Who's budgeting correctly for food?

Danaisha, because she is focusing on her health, which will have a guaranteed payoff in the long run

Charles, because he's taking efforts to save money by focusing on his needs only

Both, because needs vs wants are determined on an individual basis

Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Danaisha should cut her spending.

12.

What action corresponds to the advice "Pay yourself first?"

Wait until the end of the month to determine how much you have leftover to save

Set aside a fraction of your paycheck into a savings account before you start spending

Spend your regular paycheck on needs and wants but funnel any extra money into saving

Become self-employed so you're paying yourself instead of being paid by an employer

13.

One way the grocery store tricks you into spending more money than you budgeted for is...

Being open early in the morning and late at night

Paying their cashiers and baggers more

Putting high priced items at eye level and lower cost items above or below eye level

Accepting digital and print coupons

14.

Janine is considering what auto costs she is going to have after buying a new car. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership?

Yes, these are the three costs she should expect to pay once she is a car owner

No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.

No, she needs to factor in other costs such as maintenance, emergency repairs, etc.

No, she does not need to include the cost of gas as it is covered under her auto insurance policy

15.

Which statement accurately describes how the 50/20/30 Rule would break down your take-home pay?

50% on wants, 20% on saving, and 30% on needs

50% on saving, 20% on needs, and 30% on wants

50% needs, 20% on saving, and 30% on wants

50% on saving, 20% on wants, and 30% on needs

16.

Which of the following is a good strategy to save money on utility bills?

Leaving lights on when not in use

Using energy-efficient appliances and light bulbs

Taking long showers every day

Keeping the thermostat at a high temperature during winter

17.

What is the best way to track your monthly expenses and create a budget?

Estimate your expenses and hope for the best

Keep a record of all your expenses and categorize them

Only track your income and ignore your expenses

Ask your friends how much they spend and copy their budget

18.

Which of these is an example of a variable expense in your budget?

Rent or mortgage payment

Car insurance premium

Groceries and dining out

Gym membership fee

19.

Which of the following is a fixed expense in your budget?

Groceries

Electricity bill

Car maintenance

Mortgage payment

20.

What is the best way to reduce your monthly expenses?

Buy more luxury items

Invest in stocks without research

Plan and track your spending

Ignore your expenses

21.

What is the most effective way to save money on groceries?

Buy only branded products

Shop when you are hungry

Buy in bulk and use coupons

Buy without a shopping list

22.

What is a good way to save money on transportation costs?

Buying a new luxury car

Using public transportation or carpooling

Taking taxis or rideshares everywhere

Driving a gas-guzzling vehicle

23.

Which of the following is an example of an emergency fund?

A savings account with 3-6 months' worth of living expenses

A credit card with a high credit limit

A checking account with a small balance

An investment account with high-risk stocks

24.

What is a practical step to take when trying to improve your credit score?

Applying for several new credit cards at once

Paying off the total balance on one credit card while ignoring others

Making all credit card and loan payments on time

Transferring all debt to one credit card with a high interest rate

25.

When planning for retirement, which of the following is the most reliable source of income?

Lottery winnings

Investment in a startup company

Savings account with a fixed interest rate

Income from a rental property

26.

Which of the following is an effective way to manage debt?

Taking out a new loan to pay off old debts

Only paying the minimum amount due on credit cards

Consolidating multiple debts into a single loan with a lower interest rate

Ignoring calls from creditors

100 %

Budgeting Review

Total questions: 26

Worksheet time: 36mins

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