WorksheetsBudgeting Knowledge Check
Total questions: 10
Worksheet time: 5mins
What is a budget?
A plan of action for all income and spending
The income you take home after payroll deductions
Debt Repayment
A down payment on property
Definition of Net Income:
The amount of money in your savings account
Your yearly taxes
The income you take home after all payroll deductions are accounted for
The minimum required balance to open a savings account
When is it best to use unit pricing?
Shopping for electronics
Grocery shopping
Buying a car
Clothes shopping
What's the first step to creating a functional budget?
I don’t need a budget
Prioritize Savings
Choosing a budgeting plan that works best for your income type
Calculate your monthly income after taxes to then budget with
Which life expenses should be included in your budget?
(check all that apply)
Transportation
Food
Occasional Entertainment/ wants
Savings (emergency fund, 401k, car)
Describe the 50/30/10 rule:
50% to savings / 30% to needs / 20% to wants
50% of $ kept in cash/ 30% in your checking/ 20% in your savings account
50% of income to needs/ 30% to wants/ 20% to savings
Keep all of it in your checking and spend accordingly
True or false: You should negotiate a price that fits for you when buying a car.
True
False
What is the 70/20/10 rule?
70% monthly bills/needs, 20% debt repayment, 10% savings
70% savings, 20% needs, 10% debt repayment
70% goes to monthly bills & needs, 20% to savings, 10% to debt repayment
Investments in Stocks
How many months worth of income should you have saved in your emergency fund?
A year's worth
6-9 months
1 month
3-6 months
Why might your budget not be working?
All important and real expenses weren't accurately accounted for
Forgetting to make room for “fun money”-too restrictive
Unrealistic Goals
Spending more than you're making
