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Budgeting - Unit 10

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

If you want to spend less on food, you should...

a)

Drink more coffee and soda to feel less hungry

b)

Cook your own meals at home

c)

Eat more snacks on the go and fewer meals at home

d)

Eat at restaurants more to avoid doing dishes

2.

Leila is choosing a city to move to after college.

Which factor is LEAST important for her to consider?

a)

Average cost of Uber, Lyft, or taxi fare

b)

Employment opportunities

c)

Food and grocery store options

d)

Average rent for an apartment

3.

Which of the following is NOT typically required when signing a lease for an apartment?

a)

A security deposit

b)

Proof of employment

c)

First and last month's rent

d)

A bank account

4.

How does the 50/20/30 Rule divide your take-home pay?

a)

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

b)

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

c)

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

d)

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

5.

Your monthly net pay is $2,500 and your monthly expenses are $2,625. How would you describe your budget?

a)

You have a surplus of $2,500

b)

You have a deficit of $2,625

c)

You have a surplus of $125

d)

You have a deficit of $125

6.

Isaiah earns $3,000 at his internship. After taxes and deductions, he takes home $2,500. Which statement is correct?

a)

His gross pay is $3,000 and net pay is $2,500

b)

His gross and net pay are $2,500

c)

His gross pay is $2,500 and net pay is $3,000

d)

His gross and net pay are $3,000

7.

Aaron has a budget deficit of $175 each month.

Which option is the best way for him to fix this?

a)

Sell his car and buy a cheaper one

b)

Save $100 less and put $75 less into retirement each month

c)

Cancel a streaming subscription and eat out three fewer times each month

d)

Pay only the minimum on his student loan and credit card instead of extra

8.

Which of the following is NOT a good way to save money at the grocery store?

a)

Make a grocery list and stick to it

b)

Compare only the price of similar products

c)

Plan meals using items you have or that are on sale

d)

Check the unit price when comparing products

9.

If you move into a 3-bedroom apartment with 2 roommates instead of living alone, which expense would likely decrease?

a)

Cell phone bill

b)

Rent

c)

Bedroom furniture

d)

Groceries and eating out

10.

Which is the best description of a Zero-Based Budget?

a)

You spend your checking account balance to $0 each month

b)

You assign every dollar of your net pay to a budget category each month

c)

You pay all your debts down to $0 each month

d)

You spend your savings account balance to $0 each month

11.

You earn $40,000 per year and save 20% of your pay.

If you want a $16,000 emergency fund, how long will it take to reach your goal?

a)

1 year

b)

3 years

c)

2 years

d)

6 months

12.

Which of the following is NOT a good reason to create and stick to a budget?

a)

Having a budget is required to get a mortgage

b)

A budget can help you spot bad spending habits

c)

A budget can help you build an emergency fund

d)

A budget helps you work towards financial goals

13.

Which of these is most likely a VARIABLE cost in a budget?

a)

Student loan payment

b)

Rent

c)

Electricity bill

d)

Car insurance premium

14.

Greg is deciding if he needs a car in the city.

Which reason supports Greg getting a car instead of using public transportation?

a)

Greg’s commute by public transportation is two hours one-way

b)

There are several public transportation routes to work

c)

Greg’s company pays half his public transportation pass

d)

Public transportation costs less than a car payment

15.

What does "Pay yourself first" mean?

a)

Spend your paycheck on needs and wants, then save any extra

b)

Save part of your paycheck before spending

c)

Save whatever is left at the end of the month

d)

Become self-employed to pay yourself

16.

Sherita is deciding if she should buy a new laptop. Which question should she REMOVE from her list to decide if the laptop is a need or a want?

a)

How will I pay for this laptop? Can I afford the payments?

b)

What model laptop is popular with people my age?

c)

Can I afford this laptop now?

d)

Is this the best time to buy, or will it be on sale later?

17.

Which of the following is TRUE about a lease agreement?

a)

A lease is an agreement that includes details about rent, apartment rules, and moving out.

b)

A lease has information about your past housing experience for the owner to check.

c)

You never pay any fees when signing a lease. If you do, it is a scam.

d)

A lease is an agreement between you and your roommates that you give to the owner.

18.

How does a grocery store get you to spend more than you planned?

a)

Using coupons

b)

Placing expensive items at eye level

c)

Being open longer hours

d)

Paying staff more

19.

Dana spends $325 a month on groceries at organic markets. Chuck spends $195 a month by buying in bulk and using coupons at Save-More. Who is budgeting correctly for food?

a)

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

b)

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

c)

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

d)

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

20.

Janine has budgeted for her car loan payment, gas, and insurance after buying a new car.

Has she included all car ownership costs?

a)

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

b)

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

c)

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

d)

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