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Budgeting Quiz

Total questions: 34

Worksheet time: 46mins

Name
Class
Date
1.

Put the words in order with the definitions.

1. Things that are absolutely necessary 2. Things that are enjoyed but not essential 3. Amount of money set aside for future expenses 4. Total of all money earned in a given period of time 5. Tool that helps a person use every dollar wisely

Budget _____ Income _____ Needs _____ Savings _____ Wants _____

(a)  

2.

What is the most important reason to have a budget?

a)

To have enough money to spend on wants

b)

To never need to save money for the future

c)

To be prepared to achieve financial goals

d)

To have enough money to retire early

3.

What is the name of a rule that a person can use to help determine what should be planned for needs, wants, and savings?

a)

10% Rule

b)

50-30-20 Rule

c)

Rule of 72

d)

30-day Rule

4.

Which of the following is an example of a “want” category in your budget?

a)

House payments

b)

Groceries

c)

Medical bills

d)

Going out with friends

5.

What is a budget?

a)

A financial reward

b)

A spending spree

c)

A plan for spending and saving money

d)

A tax refund

6.

Tracking your current spending habits is a key step to budgeting success.

a)

True

b)

False

7.

Which expense should go into a budget first?

a)

gym membership

b)

pet food

c)

gas for the car

d)

bills

8.

What is a potential consequence of overspending?

a)

Winning the lottery

b)

Having a good time

c)

Going into debt

d)

Nothing

9.

Overdrawing your checking account has the following consequence.

a)

Overdraft fee

b)

Bounced check fee from the store

c)

Both

d)

None

10.

Which of the following are examples of a fixed expense?

a)

Rent, car payment, entertainment and student loan payment.

b)

Rent, car payment, daycare and student loan payment.

c)

Rent, fuel, gym membership and student loan payment

d)

All of the above.

e)

None of the above.

11.

Budget helps in ____________________________?

a)

Managing your expenses

b)

Increasing your income

c)

Reducing your savings

d)

Avoiding all financial planning

12.

Which of the following are common budgeting mistakes?

a)

Not Budgeting for vacations.

b)

Guessing about your expenses.

c)

Not creating an emergency budget.

d)

All of the above.

e)

None of the above.

13.

Online budgeting tools aren’t proven safe. It’s best to choose less risky options.

a)

True

b)

False

14.

What goes into a budget? (2 Points)

a)

money earned and money spent

b)

the amount of money you have saved

c)

the prices of the things you want

d)

a list of everything you need and nothing else

15.

Why do people say they can't afford something when they actually can? (2 Points)

a)

They schedule what days of the week they can and can't spend money.

b)

It is not permitted by the store to make the purchase.

c)

They are using their budget to work toward big goals.

d)

They don't know how to use a budget.

16.

Which of the following can lead to budgeting failure? (2 Points)

a)

Forgetting about unusual expenses like property taxes, tuition or magazine subscriptions.

b)

Using a pre-made tool that doesn’t reflect your values or lifestyle.

c)

Guilt, frustration and stress.

d)

All of the above.

17.

Which of the following statements is true about budgeting? (2 Points)

a)

Most people don’t think about their purchases when using cash.

b)

It’s important to practice caution when using cash; if it’s lost or stolen, too bad.

c)

The envelope system requires discipline. Try not to rob from one envelope to pad another.

d)

All of the above.

18.

Which of the following statements is good advice regarding your budget? (2 Points)

a)

Don’t let your budget keep you from having fun.

b)

Forget about making goals. Don’t worry about saving.

c)

Ask your friends and family to help keep you accountable.

d)

None of the above.

19.

Talking about money causes stress for families, so it’s best not to talk about it. (1 Point)

a)

True

b)

False

20.

Which of the following options would be a tip for reducing costs? (2 Points)

a)

Clip coupons and stockpile items that you might need later.

b)

Use credit cards to take advantage of member perks like airline miles or free hotel stays.

c)

Utilize online and community resources for cheaper household items and event tickets.

d)

All of the above.

e)

None of the above.

21.

Money you owe a person or a business. (2 Points)

a)

Withdrawal

b)

Net Pay

c)

Unexpected expenses

d)

Debt

22.

The usual ways people spend their money. (2 Points)

a)

Spending habits

b)

Risk

c)

Deposit

d)

Gross Pay

23.

Costs not planned for, such as accidents and emergencies. (2 Points)

a)

Interest Rate

b)

Risk

c)

Unexpected expenses

d)

Debit

24.

Money temporarily given to you in exchange for repayment with interest. (2 Points)

a)

Balance

b)

Loans

c)

Spending habits

d)

Routing Number

25.

What is your name in this class? (2 Points)

a)

[Student's Name]

b)

John Doe

c)

Jane Smith

d)

Alex Johnson

26-30.

Use your Budgeting Quiz Worksheet to answer these questions. Once finished turn your worksheet in before your go to the next question.


26.

What is Julie's/ Kate's weekly income?




(a)  

27.

How much does Julie/ Kate spend weekly?

(a)  

28.

What is Julie's/ Kate's monthly income?

(a)  

29.

How much does Julie/ Kate spend monthly.

(a)  

30.

What does Julie/ Kate need to do to save more money? Explain in detail.

4 lines
31.

What is the 50/30/20 rule in budgeting?

a)

50% needs, 30% wants, 20% savings

b)

50% savings, 30% needs, 20% wants

c)

50% wants, 30% savings, 20% needs

d)

50% needs, 30% savings, 20% wants

32.

Which of the following is a fixed expense?

a)

Groceries

b)

Rent

c)

Entertainment

d)

Clothing

33.

What do you put at the top of every paper that you turn in?

(a)  

34.

What is your name in the class?

(a)  

35.

What goes in the top left corner of each check that you write?

(a)  

36.

What is the primary purpose of creating a budget?

a)

To track your spending habits

b)

To plan for future expenses

c)

To save money

d)

To increase your income

37.

Which of the following is a fixed expense?

a)

Groceries

b)

Rent

c)

Entertainment

d)

Clothing

38.

What is a budget?

a)

Money saved in the bank or in cash

b)

Record of fixed expenses every month

c)

Plan for the money that flows in and out of your household every month

d)

An annual record of all the taxes