WorksheetsCh. 2 - Ch. 3
Total questions: 23
Worksheet time: 22mins
What is the first step in setting a financial goal?
Spend as much as you can
Identify a specific and measurable goal
Start investing in stocks
Save without any target in mind
Financial goals should always be long-term goals.
False
True
Which of the following is an example of a short-term financial goal?
Saving for retirement
Buying a new phone within six months
Paying off a 30-year mortgage
Saving for your college education
Setting financial goals helps provide a clear roadmap for how to manage your money.
True
False
Why is it important to break large financial goals into smaller, actionable steps?
How often should you review and adjust your financial goals?
Every year
Once a decade
Never, once goals are set
Regularly, as circumstances change
What is the main purpose of a budget?
To spend all your money
To track your income and expenses
To save for fun activities
To borrow more money
A successful budget includes both fixed and variable expenses.
True
False
Which of the following is considered a fixed expense in a budget?
Rent or mortgage
Groceries
Entertainment
Clothing
Why is it important to have both fixed and variable expenses in a budget?
Experts say you should save how much for your emergency fund?
4 years
2 months
1 year
3 - 6 months
What is a key advantage of using the envelope budgeting system?
It allows for unlimited spending
It encourages savings by setting aside money for specific categories
It does not require tracking expenses
It’s only useful for large budgets
Which budgeting type requires you to justify each expense, even if it was included in previous budgets?
Zero-based budgeting
Envelope budgeting
Line-item budgeting
Pay-yourself-first budgeting
Which of the following types of budgeting involves assigning specific amounts of money to different categories and using cash to limit spending?
Envelope budgeting
Line-item budgeting
Zero-based budgeting
Flexible budgeting
Zero-based budgeting requires you to allocate every dollar to a specific category, leaving some money unassigned.
True
False
You have monthly fixed expenses: $1,200 for rent (B2), $100 for insurance (B3), and $150 for utilities (B4). You also have variable expenses: $300 for groceries (B5), $200 for entertainment (B6), and $100 for transportation (B7). In cell B8, what formula would you use to calculate the total of your fixed and variable expenses?
Formula to use: =SUM(B2:B7)
Formula to use: =MIN(B2:B7)
Formula to use: (B2+B3+B4+B5+B6+B7)
Formula to use: SUM(B2:B7)
Which of these is a true S.M.A.R.T. financial goal?
I will save $20 each money for 3 months to buy a new game.
I will try to learn more about how to play the piano.
Learn how to do taxes
I will invest for retirement every year.
Now that you have calculated your total income and expenses, calculate how much money you have left after your expenses. Use cell A3 for your total income and cell B8 for your total expenses, what formula will you input in the total?
Formula to use: B8-A3
Formula to use: =A3 - B8
Formula to use: =B8-A3
Formula to use: A3 - B8
There are only three things you can do when you find that your expenses are greater than your income: You can ___________, ____________, or ____________.
Write down your goals, but don't monitor your progress or adjust them.
True
False
Achieving (a) means having enough money to cover your living expenses without needing to rely on an active income source.
Saving for college, buying a home, and retirement are all
short-term goals.
intermediate goals.
Long term goal
Mr. Weir's worst nightmares
What does S.M.A.R.T stand for?
