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Budgeting Vocab

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is a budget?

a)

A plan for unexpected expenses

b)

A written plan for giving, saving, and spending

c)

A list of debts

d)

A summary of past expenses

2.

What is income?

a)

Money spent on groceries

b)

Money received for work, as a gift, or through investments

c)

Money saved in a bank

d)

Money borrowed from a friend

3.

What is a fixed expense?

a)

An expense that changes every month

b)

An expense that remains the same from month to month

c)

An expense that occurs once a year

d)

An expense that is optional

4.

What is a variable expense?

a)

An expense that is always the same

b)

An expense that varies in dollar amount from month to month

c)

An expense that is unnecessary

d)

An expense that is paid annually

5.

What is an intermittent expense?

a)

An expense that occurs monthly

b)

An expense that occurs at various times throughout the year in large, lump sums

c)

An expense that is always fixed

d)

An expense that is always variable

6.

What is a discretionary expense?

a)

An essential expense

b)

An expense for things you don’t need

c)

A fixed expense

d)

A variable expense

7.

What is a zero-based budget?

a)

A budget with no savings

b)

A cash-flow plan that assigns an expense to every dollar of your income

c)

A budget that only tracks income

d)

A budget that ignores expenses

8.

What is net income?

a)

The amount you earn before taxes

b)

The amount you earn after payroll taxes and other deductions

c)

The total amount of your expenses

d)

The amount you save each month

9.

What is gross income?

a)

The amount you earn after taxes

b)

The amount you earn before taxes and other payroll deductions

c)

The amount you spend on essentials

d)

The amount you save for retirement

10.

What are the four basic parts of every budget?

a)

Income, debts, loans, and savings

b)

Income, giving, saving, and spending

c)

Income, taxes, expenses, and savings

d)

Income, investments, debts, and spending