WorksheetsUnit 3: Budgeting
Total questions: 35
Worksheet time: 18mins
Expenses that remain the same from month to month.
Variable
Fixed
Non-essential expenses.
Discretionary
Intermittent
Having more than one bank account is never a good idea since it can complicate money management.
True
False
The zero-based budget is the best method of budgeting because:
This type of budget is less complicated than other types of budgets
A zero-based budget allows less money for wants
Sticking to a zero-based budget requires less discipline
The zero-based budget ensures that every dollar you make is assigned a specific purpose
"Pay yourself first" means you should assign a portion of your income to saving and investing every month.
True
False
Groceries are a:
Fixed expense
Variable expense
Discretionary expense
Intermittent expense
If you write a zero-based budget every month, it is not necessary to reconcile your account.
True
False
Which of the following is something that a typical millionaire would do?
Lease a new car
Spend less money than he or she makes
Replace things that are not broken
Carry debt
Online bill pay allows you to make payments to whomever you wish without having to write a check and send it in the mail.
True
False
Which of the following account records would have the most current balance?
Account balance statement from the ATM
Your own account register
Your monthly bank statement
All of these records will have accurate account balances
The following are guidelines for budgeting with an irregular income except:
Prioritize the list in order of importance.
Make a list of all of your expenses for the month ahead.
Budgeting with an irregular income is no different than budgeting with a regular income.
When your check comes in, spend your money all the way down the list.
Car repairs are a:
Fixed expense
Variable expense
Discretionary expense
Intermittent expense
Reconcile: To match your bank statement with your checkbook
True
False
Budgeting is crucial to your financial success.
True
False
A written cash flow plan is called a:
(a)
Percentage of Americans living paycheck to paycheck:
70%
25%
50%
40%
The number-one cause of divorce in North America today is stress and disagreements over money.
True
False
Which of the following statements is false?
A cash flow statement summarizes all of the income and outgo [spending] over a certain time period.
A budget is a written plan for saving and spending.
A budget is meant to summarize the saving and spending that has taken place over the past year.
The cash flow statement is reflective of what has already taken place.
Your monthly budget should include:
Variable expenses
Discretionary expenses
Fixed expenses
All of the above
Eating out is a:
Fixed expense
Variable expense
Discretionary expense
Intermittent expense
Series of envelopes that are divided into categories and are used to store cash for planned monthly expenses.
(a)
Writing and following a zero-based budget will help you avoid overspending and impulse purchases.
True
False
Setting up automatic account transfers is the easiest way to build your savings for your emergency fund or large purchases.
True
False
Doing a budget does not:
Show if you are overspending in an area
Make overspending more likely
Remove guilt and shame sometimes associated with a purchase
Make your money go further
An item that is bought without previous planning or consideration of the long-term effects.
Sale item
Impulse purchase
Your own record of all your transactions.
Check register
Account statement
The envelope system works great for managing spending on things that don’t normally have a fixed monthly expense.
True
False
Which of the following is not a record-keeping feature you could expect from your bank?
A reconciliation sheet
Customer service reconciles your account for you
An account register
A monthly account statement
A written budget, if followed, removes __________ from your finances.
Guilt
Overspending
Management by crisis
Rent is a:
Fixed expense
Variable expense
Discretionary expense
Intermittent expense
A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero.
(a)
A debit card cannot be used for online purchases.
True
False
A summary of all the income and outgo over a certain time period.
Cash flow statement
Budget
Which of the following is a consequence of overdrawing your checking account?
Bounced check fee from the store
Stress from money mismanagement
Overdraft fee from your bank
All of the above
Occurs when money is withdrawn from a bank account and the available balance goes below zero.
Overdraft
Reconcile
