WorksheetsUnit 2 Test - Budgeting Study Guide
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
If you are trying to substantially reduce the amount you spend on food, you should try...
a)
Cooking your own food at home for as many meals as possible
b)
Dining at restaurants more often so you don't waste water doing dishes
c)
Eating way more snacks on the go and way fewer meals at home
d)
Drinking more coffee and soda so you are not as hungry for food
2.
You are putting together your first post-graduation budget. Your take-home pay will be $2,500 per month. You estimate your monthly costs to be rent of $800, car payment of $350, car insurance of $150, car maintenance of $50, entertainment of $500, food expense of $250, mobile phone of $75, student loan payment of $225 and other expense of $300. How would you describe your budget after analyzing all of your income and expenses?
a)
You have a surplus of $200
b)
You have a deficit of $200
c)
You have a deficit of $2,700
d)
You have a surplus of $5,200
3.
You are interested in renting an apartment for your senior year in college. You meet with the landlord, complete the application, and after checking your credit background and references, the landlord approves your application. In most cases, you will need to provide the landlord with _________ at the time you sign the lease in order to get the apartment.
a)
Rent payment for the first three months
b)
First month's rent and a security deposit
c)
An additional list of references and copies of your last three tax filings
d)
A $500 bonus payment for awarding you the apartment
4.
For most Americans, which budget expense category is largest?
a)
Housing
b)
Food
c)
Transportation
d)
Clothes
5.
You're considering moving into a 4-bedroom apartment with 3 roommates rather than living on your own post-college. Which of your expenses would likely DECREASE by having roommates?
a)
Renters insurance
b)
Cell phone bill
c)
Internet bill
d)
Student loan payment
6.
Which description is most accurate for a Zero-Based Budget?
a)
You put every dollar of your take-home pay into a budget category each month
b)
You spend your checking account balance down to $0 every month
c)
You spend your saving account balance down to $0 every month
d)
You pay every one of your debts down to $0 every month
7.
Bryan is a great cook. As his job, he books gigs cooking customers breakfast or dinner in their own homes on the app Cook You Dinner. Who provides Bryan's health insurance and retirement plan?
a)
Each family he cooks for
b)
The owners of the Cook You Dinner app
c)
The Google and Apple app stores
d)
Bryan has to fund them himself
8.
How is gross pay different than net pay?
a)
Gross pay is for hourly workers, while net pay is for salaried employees
b)
Gross pay is always lower, while net pay is always higher
c)
Gross pay is the total you earned, while net pay has taxes deducted
d)
Gross pay is used for spending, while net pay is used for budgeting
9.
Which one of these expenses most likely represents a VARIABLE cost in someone's budget?
a)
Electricity bill
b)
Rent
c)
Car insurance premium
d)
Student loan payment
10.
What action corresponds to the advice "Pay yourself first?"
a)
Wait until the end of the month to determine how much you have leftover to save
b)
Set aside a fraction of your paycheck into a savings account before you start spending
c)
Spend your regular paycheck on needs and wants but funnel any extra money into saving
d)
Become self-employed so you're paying yourself instead of being paid by an employer
11.
Some people experience great success when using budgeting apps to help them meet their goals. Why might this be the case?
a)
The app store guarantees you'll save money -- if you don't, they'll refund your money
b)
Because users carry their phones almost everywhere, budgeting becomes fast and convenient
c)
Apps are better at doing complex budget calculations than spreadsheets
d)
Most budgeting apps deposit extra funds into your account on a quarterly basis
12.
Lance is at the grocery store and has three options for buying boxed mac and cheese: 1 box for $1.78, a 3-pack for $6, or a 4-pack for $8. Comparing unit costs, which statement is true?
a)
A single box is the best deal
b)
A 3-pack is the best deal
c)
A 4-pack is the best deal
d)
Lance will save the most if he gets one of each -- a single box, a 3-pack, and a 4-pack
13.
One benefit of buying a car vs. leasing is...
a)
You'll have higher monthly payments than a lease
b)
The car will have better safety ratings
c)
You're always protected by a warranty
d)
You can build up trade-in or resale value
14.
While NEEDS and WANTS can vary greatly depending on the individual and their situation, which of these items would most people agree to be a NEED?
a)
Safe, reliable childcare for a single parent so they can go to work
b)
A new cell phone every two years for a college student so they can keep in touch with family
c)
Stylish clothes for a teenager so that they fit in with popular kids at school
d)
Three weeks of vacation for a corporate executive so they can unwind from work
15.
Melvin uses an Envelope Budget and has just received his paycheck. How much cash should he take out?
a)
None -- he is trying to save money!
b)
Enough to cover his fixed expenses
c)
A tiny bit to spend on wants -- he can always return to the ATM if he runs out
d)
Enough to cover his variable expenses
16.
Month after month, Jessica is overspending in her budget and decreasing her savings account balance as a result. Which action would you recommend she take immediately?
a)
Write a new lease so she is paying 25% less in rent each month
b)
Stop paying her credit card bill and put the money into savings
c)
Start packing her lunch from home every day instead of dining out
d)
Quit her job so she an look for one that pays more
17.
The defining characteristic of a job in the gig economy is...
a)
Workers are paid by the federal government
b)
Workers decide how much they want to pay in taxes
c)
Workers receive free phones and wifi connections
d)
Workers complete short-term work for many different clients
18.
Which car loan term will save you the most money?
a)
12 months/$350 a month
b)
24 months/$300 a month
c)
36 months/$200 a month
d)
72 months/$150 a month
19.
Which location is likely to have the HIGHEST cost of living?
a)
A rural area with a population of 6000 people
b)
A college town located 5 hours from the nearest big city
c)
A city thats crime rate is high and population has decreased in the last 3 decades
d)
A thriving city with a growing health care sector, pro sports teams, and good public transportation
20.
If Linus is following a 50/30/20 Budget and takes home $1000 per pay period, how much is he budgeting for his WANTS?
a)
$500
b)
$300
c)
$200
d)
$1000
21.
Sadie is a freelance social media specialist. Companies can hire her to improve their social media presence. Why is it particularly important that Sadie, and other freelancers like her, have an emergency fund?
a)
Freelancers charge a very low hourly rate, so Sadie probably doesn't get paid much
b)
Sadie doesn't have guaranteed work every day, so she needs money in case she goes a while between clients
c)
Sadie will need a large emergency fund in order to make her monthly insurance payments
d)
Sadie's job requires a lot of expensive specialty equipment that will always need replacing
22.
One way the grocery store tricks you into spending more money than you budgeted for is...
a)
Being open early in the morning and late at night
b)
Paying their cashiers and baggers more
c)
Putting high priced items at eye level and lower cost items above or below eye level
d)
Accepting digital and print coupons
23.
When renting an apartment, why is it important to have a written lease?
a)
It is against the law to live somewhere without a lease
b)
A lease clearly states the apartment costs and expectations for living there
c)
Without a lease, a renter won't know how much to budget for rent, food, insurance, or transportation
d)
Signing a lease provides you with free or discounted renters insurance
24.
Which person's income will show an increase in the next pay period?
a)
Ralph, a self-employed furniture maker, who works both weekend days to increase his inventory
b)
Marquis, a marketing manager, who works three hours Thursday night so his presentation the next day is perfect
c)
Chelsea, a city bus driver, who works two extra shifts to cover for a sick coworker
d)
Becca, a tenth grade teacher, who stays after school each day to grade papers
25.
One benefit of buying a USED car is...
a)
Lower acquisition (buying) price
b)
More depreciation
c)
Limited/No warranty
d)
Lower maintenance and gas costs
100 %
