WorksheetsIntro to Budgeting - 8th grade
Total questions: 14
Worksheet time: 7mins
1. Which of these costs would be the LEAST difficult to adjust if you were looking to reduce your expenses?
Car loan payments
Rent
Basic cell phone service
2. You earn a salary of $120,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $20,000 emergency fund. How long will it take for you to achieve your goal?
10 months
1 year
2 years
3. If you are trying to save money on food, do the following...
Cook your own meals as much as possible
Eat at McDonalds for breakfast and Chik-Fil-A for lunch
Buy more snacks from 7-11 to keep you full.
Drink more coffee and soda so you don't have to eat as much
7. Asher has a summer internship at a telecommunications company and is paid $5,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $4,400. Which of the statements below is correct?
His gross pay is $4,400 and net pay is $5,000
His gross and net pay are $5,000
His gross and net pay are $4,400
His gross pay is $5,000 and net pay is $4,400
8. You just started your first job after college and are creating your budget. Your net pay is $4,500 per month and you estimate that your monthly expenses will be $4,625. Which of the following is TRUE?
You have an extra $125 each month that you can put in your savings account
You can make small loans to friends without worrying about being paid back
Your budget will not be balanced unless you cut some expenses or find a part-time job
Following a budget will be too stressful. Just buy what you want and everything will work out.
You transfer your checking account balance to your savings account and add money as you pay bills
You transfer your saving account balance to your checking account so there is never more $0 every month in savings
Every debt is paid in full each month
12. Andrew has gone over his budget by around $200 for the last two months. Which of these options makes the most sense for him to fix his problem?
Cancel all but one subscription and eat at home
Pay just the minimum monthly payment on loans and credit card debt, instead of the extra he's been contributing
Contribute $100 less to savings each month and $100 less to his retirement fund
Sell his Pokemon cards
13. You're considering moving into a 4 bedroom apartment with 3 roommates, rather than living on your own after college. Which of your expenses would likely decrease by having roommates?
Commuting expense
Game subscriptions
Gym membership
16. Your friend has been talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT:
Bad spending habits will stand out when you prepare a budget
Your financial goals will be easier to manage if you use a budget
Budgeting can help you create an emergency fund
You need a budget to apply for college
17. These are all fixed expenses except for...
Electric bill
Car loan payment
18. Which of the following would you do if taking the advice "Pay yourself first?"
See what you have left after you have paid bills and gone shopping. Then save that.
Take out a determined amount of your pay and put it in savings as soon as you get paid.
Spend your regular paycheck on needs and wants but get a second job for savings
Become an Uber driver so you can save your tips
19. Samantha graduated from high school and earned a cosmetology certificate at the CAS. She is trying to decide whether or not she should buy a new laptop for herself. Samantha made a list of questions she can ask herself to determine if the new laptop is a need or a want. Which of the following questions would you delete from this list?
Do I have the money to pay for this laptop right now?
Is there expected to be a sale on this laptop soon?
Will my friends be impressed with this laptop?
If I cannot pay in full, how much more would it cost to put it on a credit card?
21. The envelope budgeting strategy is described as...
Having different envelopes for coupons based on their expiration date
Spending 50% on needs, 30% on wants and 20% on savings
Keeping a diary of all expenses.
24. How does the 50/20/30 Budgeting Rule work?
Gross pay is allocated 50% to needs, 30% to wants and 20% to savings
Net pay is allocated 50% to saving, 20% to needs, and 30% to wants
Net pay is allocated 50% to needs, 20% to saving, and 30% to wants
Net pay is allocated 50% to saving, 20% to wants, and 30% to needs
