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Budgeting

Total questions: 25

Worksheet time: 29mins

Name
Class
Date
1.

Income is all the money you earn (make) over a period of time. Usually a month.

a)

True

b)

False

2.

A budget _________________________.

a)

Lets you know how much money you have and where it's going

b)

lets you know what's for dinner

c)

is something babies understand

3.

All of these are "NEEDS" EXCEPT:

a)

HOUSING

b)

MOVIE TICKETS

c)

RENT

d)

GROCERIES

4.

Rent and car insurance payments are both which type of expenses?

a)

fixed costs that are needs

b)

fixed costs that are wants

c)

variable costs that are needs

d)

variable costs that are wants

5.

Which of the following people would benefit MOST from a personal budget?

a)

Tim carefully keeps track of his expenses.

b)

Sue spends less than she earns.

c)

David is saving for a major purchase.

d)

Bob does not have enough money to pay bills.

6.

Daycare can be very expensive! My friend pays $972 every month for her 3 year old daughter.  This is considered a

a)

Fixed Expense

b)

Flexible Expense

c)

Discretionary Expense

d)

Income

7.

Your pay BEFORE deductions

a)

Gross

b)

Net

c)

Income

d)

paycheck

8.

Something thought to be an essential item required for life (food, water etc.).

a)

Need

b)

Want

c)

Desire

d)

Impulse

9.

Something unnecessary but you desire.

a)

Need

b)

Want

c)

Expect

10.

Money earned after taxes and other deductions.

a)

Net income

b)

Gross income

c)

Monthly income

11.

What do families spend most of their money on?

a)

Transportation

b)

Housing

c)

Food

d)

Clothing

12.

What do you call your annual salary?

a)

Net income

b)

Gross income

c)

Paycheck

d)

Cash flow

13.

Preparing a budget includes:

a)

Income, Expenses, Saving

b)

Only listing your expenses

c)

Only listing your debts

d)

Only listing your income

14.

Jenna wants to decrease the amount of $ she spends on food. Which of the following would help? (hint: choose 2 correct answers)

a)

Decide what she will make for dinner that same day

b)

Go to the grocery store with a list

c)

Go to the store whenever she needs 1-2 items

d)

Keep staple foods (e.g. beans, rice) readily stocked

15.

If an expense can be cut from your budget to save money, it is considered a ______.

a)

want

b)

need

c)

income

d)

savings

16.

What is the 50/30/20 Rule?

a)

50 savings/30 needs/ 20 wants

b)

50 wants/ 30 savings/ 20 needs

c)

50 needs/30 wants/ 20 saving

d)

50% groceries / 30% home/ 20% car

17.

What are Flexible/Variable Expenses?

a)

Expenses that only happen once a year.

b)

Expenses that change every month.

c)

Expenses that stay the same from one month to the next.

d)

Expenses that all Needs

18.

What is a surplus?

a)

Not having enough money to complete the budget. Expenses more than income.

b)

Having money left over after the budget is complete. Income more than an expense.

c)

Adding extra categories to a budget to make it balance.

d)

All the above

19.
Examples of Fixed Expenses include:
a)
Mortgage, loans, rent
b)
Cable, entertainment, food
c)
Gas, food, phone
d)
Clothing, gas, food
20.

Fixed or variable expense: Groceries

a)

Fixed

b)

Variable

21.
The next best alternative given up when making a financial choice.
a)
Scarcity
b)
Opportunity Cost
22.
The economic condition of limited resources that prevents people from having everything they want.
a)
Scarcity
b)
Opportunity Cost
23.

Which of the following is an example of a fixed expense?

a)

Entertainment

b)

Car repairs

c)

Auto insurance

d)

Dining out

24.

What is the importance of setting a budget for food?

a)

To limit food consumption

b)

To indulge in expensive meals

c)

To avoid overspending

d)

To prioritize entertainment

25.

What is the purpose of comparison shopping practices?

a)

To increase spending

b)

To decrease choices

c)

To make better financial choices

d)

To ignore alternatives