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Worksheets

Budget Concepts

Total questions: 25

Worksheet time: 33mins

Name
Class
Date
1.

Tina earned $15 doing laundry and $9 washing the car last month. She created a balanced budget for her earnings. Which table could show Tina’s budget?

a)
b)
c)
d)
2.

Lola is saving for a vacation. Based on the budget numbers here, how much can she put in her vacation account this month?

a)

$32.00

b)

$48.00

c)

$112.00

d)

$128.00

3.

The first step in making a budget is to:

a)

identify all sources of income

b)

how much monthly bills are

c)

identify all places of spending

d)

get a piece of paper

4.

Once a budget is established, you should not make a sincere effort to follow it.

a)

True

b)

False

5.

What type of expense is a set amount of money due on a set date?

a)

fixed expense

b)

flexible expense

6.

Which of the following is income and should be considered part of your budget?

a)

money received from selling your car

b)

money received as a graduation gift

c)

money from your part-time job

d)

all of the above

7.

Which of the following is an expense?

a)

cell phone bill

b)

mp3 purchases

c)

lunch

d)

all of the above

8.

What is a budget , and why is it important?

a)

A budget is a budget. it allows you to make crazy financial choices

b)

A budget is a summary of money. it allows you to make safe choices

c)

a budget is a detailed summary of expected income and expenses during a specific time period. It allows you to make informed financial choices

d)

a budget is a detailed summary of unexpected income and expenses during a specific time period. It allows you to make uninformed financial choices

9.

Why is tracking your expenses important in budgeting?

a)

To categorize your expenses

b)

To calculate your income

c)

To keep up with your budget

d)

To plan your budget

10.

What should you do if your expenses exceed your income in a budget?

a)

Cut back on essential expenses

b)

Increase your income

c)

Adjust your budget lines and reduce nonessential categories

d)

Add more to your emergency fund or savings goals

11.

How can categorizing expenses help in making better spending choices?

a)

By identifying areas to cut expenses

b)

By tracking your spending

c)

By setting up a monthly budget

d)

By calculating your income

12.

What can be done to increase savings in a budget?

a)

Cutting back on expenses

b)

Increasing income

c)

Both listed answers

d)

Neither listed answer

13.

What should Jessica do if she wants more savings?

a)

Neither listed answer

b)

Both listed answers

c)

Increase her income

d)

Cut back on expenses

14.

What can Jessica do with the money left over at the end of the year?

a)

All of the above

b)

Save it for emergencies or unanticipated expenses

c)

Dedicate it to her long-term goal

d)

Apply it to her short-term goal

15.

Which of the following is considered a non-essential expense?

a)

Utilities

b)

Food

c)

Concert tickets

d)

Shelter

16.

using more money than you have available

a)

income

b)

savings

c)

insurance

d)

overspending

17.

Buying the things we need (clothing, food)

Buying things we want (games, toys)

Giving to others (gifts, donations)

a)

budget

b)

savings

c)

expenses

d)

overspending

18.

Budgeting can help prevent impulse buying.

a)

True

b)

False

19.

Fixed expenses are those which stay relatively the same from month to month and are required. Which of the following is an example of a fixed expense?

a)

Eating out

b)

Entertainment

c)

Mortgage and rent

d)

Clothing

20.

In creating a monthly budget, ideally, the income column should be _______ than the expense column.

a)

less

b)

equal

c)

greater

21.

Fill in the blank: After purchasing a new car, the car insurance and car payment were added to the _______ side.

a)

Variable Expenses

b)

Fixed Expenses

22.

Gabby wants to buy a new dishwasher that costs $500. She has already saved $100. She earns $1,200 a month and her total monthly expenses come to $1,000. Gabby is going to put all of her extra money each month into her savings account for the dishwasher. Assuming her expenses stay the same, how long will it take Gabby to save enough money for the dishwasher?

a)

three months

b)

Two monthes

c)

five months

d)

one month

23.

Which of the following are considered WANTs? (You can choose more than one.)

a)

Concert tickets

b)

Water

c)

A new pair of shoes

d)

Rent

e)

Medical fees

24.

For which item would someone most likely need to save money in order to

purchase?

a)

a washing machine

b)

a tub of ice cream

c)

dinner for two

d)

a pair of socks

25.

People create and keep a personal budget to help them _____.

a)

set and reach financial goals

b)

apply for loan

c)

buy anything they want

d)

earn promotions at work