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Budget Boss

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

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

a)

50% for savings, 30% for needs, 20% for wants

b)

40% for needs, 40% for wants, 20% for savings

c)

60% for wants, 20% for needs, 20% for savings

d)

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

2.

How can the envelope system help with budgeting?

a)

It encourages spending more on non-essential items.

b)

It allocates cash to specific categories, promoting discipline and visual tracking.

c)

It allows for unlimited spending without consequences.

d)

It eliminates the need for tracking expenses altogether.

3.

What are fixed costs? Choose the right variant.

a)

Cost of raw materials

b)

Rent for office space

c)

Advertising expenses for a campaign

d)

Utility bills for the office

4.

What are variable costs? Provide two examples.

a)

Overhead costs such as utilities and insurance

b)

Raw materials and direct labor costs

c)

Depreciation costs on equipment and machinery

d)

Fixed costs like rent and salaries

5.

Which of the following is commonly used as a symbol for saving money, especially small amounts over time?

a)

Wallet

b)

Piggy Bank

c)

Credit Card

d)

Safe

6.

What does the meaning of "profit" generally in business?

a)

The total amount of money a business earns before expenses are deducted

b)

The money remaining after all expenses are subtracted from revenue

c)

The total value of all goods sold by a business

d)

The amount of money invested in a business

7.

What is the correct definition of Cash Flow?

a)

The amount of money saved in a piggy bank for future expenses.

b)

The total income earned from a job over a year.

c)

The movement of money in and out of a business or individual's finances over a specific period.

d)

The percentage of income allocated to entertainment and leisure activities.

8.

What does the method "Pay Yourself First" mean in personal finance?

a)

Paying all your bills before considering any savings.

b)

Prioritizing discretionary spending before fixed expenses.

c)

Prioritizing savings and investments before spending on anything else.

d)

Using your income to pay for leisure activities first to ensure enjoyment.

9.

Which of the following best defines an Expense?

a)

The total amount of money earned over a specific period.

b)

The portion of income saved or invested for future use.

c)

The process of allocating income into categories such as savings, needs, and wants.

d)

The money spent on goods, services, or other costs to meet needs and wants.

10.

What is the best definition of a Budget?

a)

A plan for how to allocate income among savings, expenses, and investments over a specific period.

b)

The total amount of money saved for future goals.

c)

The unexpected costs that arise during a financial period.

d)

A tool used to track past spending habits without setting financial goals.