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WorksheetsBudgeting Review
Total questions: 34
Worksheet time: 17mins
What is an essential first step in creating a budget?
List your expenses and income
Apply for loans
Buy insurance
Check your credit score
How much of your income should ideally go to savings?
5-10%
10-20%
20-30%
50%
What is an emergency fund used for?
Annual vacations
Unexpected expenses
School supplies
Movie tickets
What is the primary purpose of a budget?
Track only savings
Spend all income
Plan how to use money effectively
Avoid paying taxes
What is considered a variable expense?
Rent
Car Loan
Grocery Shopping
Insurance Premiums
What is discretionary spending?
Necessary spending on rent and utlities
Unexpected Medical Bills
Spending on Non-Essential items
Expenses covered by insurance
If your expenses exceed your income, what should you do first?
Use Credit Cards for the difference
Take out a Loan
Increase your entertainment budget
Cut unnecessary expenses
What is a Fixed Expense?
Electric Bill
Car Payment
Dining Out
Groceries
What percentage of your income is recommended for transportation costs?
5%
10-15%
20-30%
50%
Which car-related expense will likely vary from month to month?
Loan Payment
Insurance
Registration
Gas
When should you buy an extended warranty for your car?
If you plan to keep the car for many years
Only for new vehicles
Always, no matter the car's condition
Only for electric vehicles
Why might buying a used car be a good financial decision?
They are easier to drive
They require less maintenance
They cost less and depreciate slower
They have lower insurance rates
What does it mean to lease a car?
Rent a car for long road trips
Finance a car purchase over time
Buy a car and pay the insurance monthly
Pay to use a car for a set period without owning it
What is an example of a Hidden Cost of owning a car?
Routine Maintenance
Tire Wear
Car Loan Payments
Gas
Which of these should be included in a car budget?
Monthly Loan Payments
Gas Expenses
Insurance
All of the Above
What should you do before signing a lease?
Pay the first 6 months' rent upfront
Read it carefully to understand the terms
Ask for a refund policy
Only focus on the monthly rent amount
Which of the following is typically NOT included in rent?
Property Tax
Utilities
Security Deposit
Maintenance
What is a benefit of renting instead of buying a home?
No need to pay for insurance
Less responsibility for repairs
Property value increases
Earn equity on rent payments
What is the typical lease length for a rental apartment?
3 months
6 months
12 months
24 months
What is a security deposit?
A down payment on a house
An extra fee for parking
Money paid to cover possible damage to a rental property
A fee for late rent payments
Which housing cost is typically Fixed?
Rent
Electricity
Water
Internet
What percentage of your income should ideally go to housing?
10%
25-30%
50%
75%
What is a rental application fee?
A refundable security deposit
A fee paid to apply for an apartment
The first month's rent in advance
A fee paid to break the lease early
What is the purpose of meal planning?
To reduce cooking time
To make cooking easier
To eat at restaurants less often
To save money by buying only what you need
What is a typical percentage of income spent on food?
5-10%
10-15%
20-30%
50%
What should you do to avoid overspending on groceries?
Always shop at convenience stores
Buy snacks in large quantities
Avoid comparing prices
Stick to a grocery list
What is one advantage of using coupons?
They lower the cost of specific items
They increase product quality
They work at all stores
They are always available online
What is a store brand product?
A luxury product
A product with no name
A product made specifically for one store
A product sold only during the holidays
How can buying food in bulk save money?
The price per item is often lower
It reduces the need for meal planning
You can avoid using coupons
You don't have to cook as often
What is one way to reduce grocery expenses?
Buy only organic products
Use coupons and shop sales
Shop and specialty stores
Avoid making a shopping list
What is the first step in creating a personal budget plan?
Setting financial goals
Tracking spending habits
Listing all sources of income
Differentiating between needs and wants
____________________ income is the money a person has after taxes and deductions (net pay).
disposable
discretionary
fixed
variable
A bank account that allows quick access to money for everyday expenses.
SYNONYMS
deposit account
credit card
checking account
I.O.U.
Match definition to correct term:
Money earned
income
opportunity cost
risk
personal finance
budget
