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Budgeting Review

Total questions: 28

Worksheet time: 24mins

Name
Class
Date
1.

If an expense can NOT be removed from your budget to save money, it is considered a _____.

a)

Income

b)

Want

c)

Need

d)

Savings

2.
Preparing a budget includes
a)
Income, Expenses, Saving
b)
Only listing your expenses
c)
Only listing your debts
d)
Only listing your income
3.
Examples of Fixed Expenses include:
a)
Mortgage, loans, rent
b)
Cable, entertainment, food
c)
Gas, food, phone
d)
Clothing, gas, food
4.

Which one is a fixed (same amount, same time) payment?

a)

food

b)

power

c)

mortgage

d)

petrol

5.

Fixed or variable expense: Groceries

a)

Fixed

b)

Variable

6.
Car Insurance
a)
Fixed Expense
b)
Variable Expense
7.
Dining Out
a)
Fixed Expense
b)
Variable Expense
8.
A vacation is an example of a _________
a)
need
b)
want
9.
Medical care is an example of a ______
a)
Need 
b)
Want
10.

What is a budget?

a)

A calendar used to plan out your activities for the month

b)

A plan for spending and saving your money

c)

A plan to manage your time for the day

d)

A type of savings account

11.

What is gross pay?

a)

The money that you earn before taking out deductions

b)

The money that you earn after taking out deductions

12.

What is net pay?

a)

The money that you earn before taking out deductions

b)

The money that you earn after taking out deductions

13.

Brandon receives his paycheck, and it says his gross pay is $250 and his net pay is $200. How much money did he have in deductions this pay period?

a)

$50.00

b)

$200.00

c)

$250.00

d)

$450.00

14.

Why should you use your NET pay when creating a budget?

a)

Your net pay will always be higher, so you'll have more money to spend

b)

Your net pay is a more accurate picture of how much money you have available to spend or save

c)

Your employer knows what your gross pay is, but you only know what your net pay is

d)

Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget

15.

Who has to pay taxes to the US government?

a)

Every citizen, regardless of their age or working status

b)

Every person or company that earns income in the US

c)

Anyone who owns a home or attends a public school

d)

No one has to - taxes are a voluntary program

16.

Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?

a)

50% needs, 30% wants, 20% savings

b)

50% budget, 30% needs, 20% wants

c)

50% saving, 30% needs, 20% wants

d)

$50 needs, $30 wants, $20 savings

17.

Jenna wants to decrease the amount of $ she spends on food. Which of the following would help?

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)

Eat at fast food restaurants multiple times a week

18.

Which of the following is TRUE about unit pricing?

a)

Unit prices can help you compare the prices of similar items

b)

Unit price labels are universal throughout the country

c)

It's easy to compare quantities on a unit price label

d)

All states require unit price labels

19.

A 18oz box of cereal costs $4.99. How would you calculate the unit price?

a)

18oz / $4.99

b)

9 oz / $2.50

c)

$4.99 / 18oz

d)

(18oz) x ($4.99)

20.

In "pay yourself first" budgeting, what's typically the first action after getting paid?

a)

Pay your rent or mortgage

b)

Buy groceries for the week

c)

Transfer money to your savings account

d)

Pay off credit card balances

21.

Deductions

a)

Hard or electronic copy of earnings

b)

Anything that you might incur an expense for

c)

All expenses deducted from gross pay that results in net pay.

d)

Federal or state tax paid after net pay is received

22.

Taxes vary from state to state and city to city. To make it easier to factor an estimated required annual salary, figure an average of _____% is withheld from your paycheck.

a)

10

b)

15

c)

20

d)

25

23.

You want to be spending ____ than what you are making.

a)

more

b)

less

24.
What is the first step in budgeting?
a)
Record what you spend
b)
Estimate your income
c)
Set financial goals
d)
Review and evaluate monthly
25.
Which of the following is an example of a "life change" that would effect your budget?
a)
marriage
b)
children
c)
change in job
d)
all of these
26.
Why do you want to have savings?
a)
financial emergencies
b)
exciting financial opportunties
c)
financial security
d)
all of these
27.
What percentage is recommended for savings?
a)
5%
b)
10%
c)
20%
d)
15%
28.
If expenses were to exceed income on a spending plan, what would be a financially smart solution?
a)
Earn less income
b)
Decrease expenses
c)
Increase purchases
d)
Use a credit card more often