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Worksheets

Budgeting

Total questions: 25

Worksheet time: 1hrs 6mins

Name
Class
Date
1.
Medical care is an example of a ______
a)
Need 
b)
Want
2.
A vacation is an example of a _________
a)
need
b)
want
3.
Car insurance is a ____________ expense
a)
fixed
b)
variable
4.
Electricity is an example of a ______ expense
a)
fixed
b)
variable
5.
Homeowner's Insurance
a)
Fixed Expense
b)
Variable Expense
6.
Examples of Fixed Expenses include:
a)
Mortgage, loans, rent
b)
Cable, entertainment, food
c)
Gas, food, phone
d)
Clothing, gas, food
7.
Preparing a budget includes
a)
Income, Expenses, Saving
b)
Only listing your expenses
c)
Only listing your debts
d)
Only listing your income
8.

If an expense can NOT be removed from your budget to save money, it is considered a _____.

a)

Income

b)

Want

c)

Need

d)

Savings

9.
Budgeting is crucial to your financial success.
a)
True
b)
False
10.

Which of the following is generally the most expensive category in a person’s budget?

a)

Healthcare

b)

Clothing

c)

Transportation

d)

Housing

11.

Jaxson can budget 1% of his monthly income to gifts. If he makes $1,295 a month, how much money can he put toward his gift category?

a)

$12.95

b)

$1.29

c)

$120.95

d)

$1.95

12.

8.The money an individual spends regularly for items or services.

a)

Budget

b)

Expense

c)

Checking Account

d)

Financial Plan

13.

Total monthly income

a)

Income from only one source

b)

Total income of your parents and siblings added to your income.

c)

Income from all possible sources.

d)

A spending plan of expenses

14.

Liabilities

a)

Anything that you might incur an expense for.

b)

All expenses deducted from income before net pay can result.

c)

Income left over after paying all expenses for he month or year

d)

Income from all possible sources.

15.
Jill decides to drive to work instead of taking the bus. It takes her 90 minutes to get there and the bus ride would have been 40.
What type of analysis does this question represent?
a)
Opportunity Cost Analysis
b)
Cost-benefit Analysis
c)
Marginal Analysis
d)
Discretionary Analysis
16.
The term that best describes money left over after paying taxes, fixed and other essential living expenses, is:
a)
Net Pay
b)
Net Surplus
c)
Play Money
d)
Discretionary Income
17.

What is the difference in a bank and a credit union?

a)

Credit unions are member owned.

b)

Banks are non-profit

c)

Credit unions are for profit

d)

Banks deal with less cash than credit unions.

18.

What is budgeting?

a)

The process of spending money without any plan or organization.

b)

The process of saving money for future use.

c)

The process of investing money in the stock market.

d)

The process of creating a plan to manage and allocate financial resources.

19.

Why is budgeting important for financial planning?

a)

To track income and expenses, set financial goals, and make informed decisions.

b)

To waste money and overspend

c)

To ignore financial goals and make impulsive decisions

d)

To have no control over income and expenses

20.

What is the difference between short-term and long-term financial goals?

a)

Short-term financial goals can be achieved within a year or less, while long-term financial goals take more than a year to achieve.

b)

Short-term financial goals involve saving money, while long-term financial goals involve investing money.

c)

Short-term financial goals are less important than long-term financial goals.

d)

Short-term financial goals can be achieved within a month or less, while long-term financial goals take more than a month to achieve.

21.

This helps you prepare for unexpected expenses.

a)

Credit cards

b)

Checking account

c)

Emergency fund

d)

None of the above

22.

What are goals called that take more than a year to accomplish?

a)

Short-term goals

b)

Long-term goals

c)

Expenses

23.

What are goals called that take less than a year to accomplish?

a)

Short-term goals

b)

Long-term goals

c)

Expenses

24.

amount of money needed to sustain a certain level of living including basic expenses

a)

cash envelope budget

b)

needs

c)

budget

d)

cost of living

25.

Reaching a conclusion after considering alternatives and their results.

a)

gross pay

b)

cost of living

c)

consequences

d)

decision-making