WorksheetsBudgeting - Outcome Assessment
Total questions: 16
Worksheet time: 8mins
What role does a budget play in managing your personal finances?
(a)
Benjamin is trying to cut down on his monthly expenses. Which of these costs would be the MOST difficult for him to adjust?
Dining out at local restaurants
Loan payment on a new car
Expenses for new clothes
Postponing a purchase for a big-screen TV
Jana is considering purchasing a new laptop now that she has graduated. She has compiled a list of questions to help her decide if the laptop is a necessity or a luxury. Which of the following questions should she REMOVE from her list?
Will this laptop help me in my new job or career path?
Is there a possibility of getting a discount if I wait for a holiday sale?
What color laptop would look best with my current accessories?
Do I have enough savings to buy this laptop without affecting my budget?
Emma is trying to manage her finances using the 50/30/20 Rule. How should she allocate her take-home pay according to this rule?
50% needs, 30% on wants, and 20% on saving
50% on wants, 30% on needs, 20% on saving
You have a yearly income of $50,000 and decide to save 15% of your gross salary. If you want to build a $22,500 emergency fund, how long will it take to reach your goal?
2 years
3 years
4 years
5 years
What does the principle of 'Pay yourself first' suggest you do with your income?
Use your income to cover all expenses first, then save what's left
Immediately allocate a portion of your income to savings before spending on anything else
Invest in stocks and bonds before paying any bills
Ensure all debts are paid off before considering saving any money
What is the primary goal of a Zero-Based Budget?
To allocate every dollar of income to a specific expense or savings category
To ensure your checking account balance is zero at the end of the month
To reduce your savings account to zero by month's end
To eliminate all debts by paying them down to zero each month
9. 1)How does envelope budgeting work? 2)List a pro and a con for this strategy
You're thinking about moving into a 2-bedroom condo with a friend instead of renting a one-bedroom apartment by yourself. Which of your expenses is most likely to be lower with a roommate?
Utilities
Rent
Internet bill
Car insurance
12. Greg is evaluating whether to buy a car or rely on public transportation in the city. Which of the following would be a compelling reason for Greg to purchase a car?
Public transportation is available 24/7 near Greg's apartment
Greg's workplace offers a shuttle service from the nearest train station
The cost of maintaining a car is higher than using public transportation
Greg's commute using public transportation takes over two hours each way
Emma is considering what auto costs she is going to have after buying a new car. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Emma factored in all of the costs associated with car ownership?
Yes, these are the three costs she should expect to pay once she is a car owner
No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.
No, she needs to factor in other costs such as maintenance, emergency repairs, etc.
No, she does not need to include the cost of gas as it is covered under her auto insurance policy
13. One way the grocery store tricks you into spending more money than you budgeted for is...
Being open early in the morning and late at night
Paying their cashiers and baggers more
Putting high priced items at eye level and lower cost items above or below eye level
Accepting digital and print coupons
Zoe is trying to substantially reduce the amount she spends on food. She should try...
Cooking her own food at home for as many meals as possible
Dining at restaurants more often so she doesn't waste water doing dishes
Eating more snacks on the go and way fewer meals at home
Drinking more coffee and soda so she is not as hungry for food
You are putting together your first post-graduation budget. Your net pay is $2,500 per month and you estimate that your monthly expenses will be $2,625. Which of the following is TRUE?
You have an extra $125 each month that you can spend on a fun or leisure activity
You need to either cut back on your spending or find an additional source of income to balance your budget
You can invest a portion of your monthly income into a retirement fund, as your expenses are well within your budget1a,8
You have room in your budget to make donations to your favorite charity
16. For two months in a row, Ethan realizes he has a budget deficit of roughly $175. Which of these options makes the most sense for him to fix his problem? (Deficit is negative!)
Cancel one of his streaming video subscriptions and go out to dinner three fewer times each month with friends
Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing
Contribute $100 less to savings each month and $75 less to his retirement fund
Sell his current car and get a less expensive vehicle
Why is it beneficial to maintain a personal budget?
(a)
