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Budgeting Review

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

Which cost is hardest to reduce?

a)

Dining out

b)

Car loan payment

c)

New clothes

d)

Postponing big-screen TV purchase

2.

If you want to spend less on food, you should try...

a)

Cooking your own food at home as much as possible

b)

Dining at restaurants more often

c)

Eating more snacks and fewer meals at home

d)

Drinking more coffee and soda to reduce hunger

3.

Leila is choosing a city to move to. Which factor is LEAST important for her?

a)

Average rent for an apartment

b)

Food and grocery store options

c)

Employment opportunities

d)

Average cost of Uber, Lyft, or taxi fare

4.

Greg is deciding if he needs a car in the city. Which reason supports getting a car instead of using public transportation?

a)

There are public transportation routes between Greg's apartment and work

b)

Public transportation costs less than Greg’s car payment

c)

Greg’s company pays half of his public transportation pass

d)

Using public transportation, Greg’s commute is two hours one-way

5.

Which of the following is NOT a good budgeting strategy for saving money at the grocery store?

a)

Focus on unit price when comparing products

b)

Plan meals around items you already have or items on sale

c)

Focus only on price when comparing products

d)

Make a grocery list and stick to it

6.

Which is the best description of a Zero-Based Budget?

a)

You assign every dollar of your net pay to a budget category each month

b)

You spend your checking account balance to $0 each month

c)

You spend your savings account balance to $0 each month

d)

You pay all your debts to $0 each month

7.

Aaron has a budget deficit of $175 for two months. Which option best helps him fix this?

a)

Cancel a streaming subscription and eat out less with friends

b)

Pay only the minimum on his student loan and credit card debt

c)

Contribute $100 less to savings and $75 less to retirement each month

d)

Sell his car and buy a cheaper one

8.

You're moving into a 3-bedroom apartment with 2 roommates instead of living alone. Which expense would likely decrease?

a)

Groceries and eating out

b)

Rent

c)

Cell phone bill

d)

Bedroom furniture

9.

Danaisha spends $325 a month on organic groceries. Charles spends $195 a month by shopping in bulk and using coupons. Who is budgeting correctly for food?

a)

Danaisha, because she is focusing on her health, which will have a guaranteed payoff in the long run

b)

Charles, because he's taking efforts to save money by focusing on his needs only

c)

Both, because needs vs wants are determined on an individual basis

d)

Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Danaisha should cut her spending.

10.

What does "Pay yourself first" mean?

a)

Save whatever is left at the end of the month

b)

Put part of your paycheck into savings before spending

c)

Spend on needs and wants, save any extra

d)

Be self-employed to pay yourself

11.

How does the grocery store encourage you to spend more than you planned?

a)

Being open early and late

b)

Paying staff more

c)

Placing expensive items at eye level and cheaper ones above or below

d)

Accepting coupons

12.

Janine has budgeted for her car loan, gas, and insurance after buying a new car. Has she included all car ownership costs?

a)

Yes, these are the three costs she should expect to pay once she is a car owner

b)

No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.

c)

No, she needs to factor in other costs such as maintenance, emergency repairs, etc.

d)

No, she does not need to include the cost of gas as it is covered under her auto insurance policy

13.

15. How does the 50/30/20 Rule divide your take-home pay?

a)

50% on wants, 20% on saving, and 30% on needs

b)

50% on saving, 20% on needs, and 30% on wants

c)

50% needs, 30% on wants and 20% on savings

d)

50% on saving, 20% on wants, and 30% on needs