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Budgeting Vocabulary

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is the 50/30/20 Budget method?

a)

A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment

b)

A budgeting method that allocates 30% to needs, 50% to wants, and 20% to savings and debt repayment

c)

A budgeting method that allocates 20% to needs, 30% to wants, and 50% to savings and debt repayment

d)

A budgeting method that allocates 40% to needs, 30% to wants, and 30% to savings and debt repayment

2.

What is a Cash Envelope Budget?

a)

A budgeting method where money is saved in a bank account

b)

A budgeting method where money is placed in labeled envelopes according to budget categories

c)

A budgeting method where money is invested in stocks

d)

A budgeting method where money is spent without any categorization

3.

What does 'Deficit' mean in budgeting terms?

a)

When your income exceeds your expenses

b)

When your expenses exceed your income

c)

When your savings exceed your expenses

d)

When your income equals your expenses

4.

What is a Down Payment?

a)

A portion of the total cost of an item paid at the time of purchase

b)

The full cost of an item paid over time

c)

A loan taken to cover the cost of an item

d)

A refund received after purchasing an item

5.

What is a Fixed Expense?

a)

A cost that varies each month

b)

A cost that can be expected at regular intervals and remains the same amount

c)

A cost that is paid only once

d)

A cost that decreases over time

6.

What is Gross Pay?

a)

Total earnings before any deductions are taken

b)

Total earnings after payroll taxes and other deductions

c)

Money received from investments

d)

The lowest income necessary for a worker

7.

What is the definition of Income?

a)

Money received from work, investments, business, etc.

b)

Total earnings before any deductions are taken

c)

The lowest income necessary for a worker

d)

Expenses that are essential for living

8.

What does Living Wage refer to?

a)

The lowest income necessary for a worker to meet their basic needs

b)

Total earnings after payroll taxes and other deductions

c)

A fixed amount paid over a period of time

d)

When your income exceeds your expenses

9.

What is Net Pay?

a)

Total earnings after payroll taxes and other deductions have been taken out

b)

Total earnings before any deductions are taken

c)

Money received from work, investments, business, etc.

d)

A strategy to save a specified amount of your paycheck

10.

What is Renters Insurance?

a)

A form of property insurance for renters covering losses and liability

b)

A contract between a tenant and a landlord

c)

A fixed amount paid over a period of time

d)

The cost for one item or measurement

11.

What is a Residential Lease?

a)

A contract between a tenant and a landlord providing terms and costs for renting

b)

A form of property insurance for renters

c)

A fixed amount paid over a period of time

d)

The cost for one item or measurement

12.

What does Surplus mean in financial terms?

a)

When your income exceeds your expenses and you have money leftover

b)

Total earnings before any deductions are taken

c)

Money received from work, investments, business, etc.

d)

The lowest income necessary for a worker

13.

What is Unit Price?

a)

The cost for one item or measurement to compare similar products

b)

A fixed amount paid over a period of time

c)

Total earnings after payroll taxes and other deductions

d)

A strategy to save a specified amount of your paycheck

14.

What are utilities in the context of home or business expenses?

a)

Optional luxury services

b)

Basic services needed for comfort and functionality

c)

Irregular expenses

d)

Investments in property

15.

What is a variable expense?

a)

A fixed monthly cost

b)

A cost that appears irregularly or changes in amount

c)

A one-time purchase

d)

A tax-deductible expense

16.

What does variable income refer to?

a)

Income that is the same every month

b)

Income that varies from week to week or month to month

c)

Income from investments

d)

Income from a fixed salary

17.

What is a wage?

a)

A yearly salary

b)

A set amount paid for every hour worked

c)

A commission-based income

d)

A bonus payment

18.

What are wants in terms of expenses?

a)

Necessary living expenses

b)

Expenses that help you live more comfortably

c)

Mandatory taxes

d)

Emergency savings

19.

How is wealth measured?

a)

By the amount of money spent

b)

By the number of properties owned

c)

By assets minus liabilities

d)

By annual income

20.

What is a zero-based budget?

a)

A budget with no savings

b)

A budgeting method where every earning is assigned a role

c)

A budget that only tracks expenses

d)

A budget that ignores investments