WorksheetsChapter 8 Budget Busters
Total questions: 20
Worksheet time: 37mins
The sooner you begin saving, the more time your money has to grow.
True
False
Disposable income is the amount of money left after paying all current necessities, such as rent, food, and clothing.
True
False
Net worth is the value of all of your liabilities minus your assets.
True
False
Short-term savings is money you put away for major expenses in the future.
True
False
The amount earned on the principal savings or investment is called interest.
True
False
The concept of paying into your savings first, and then living on the remainder of your take-home pay is called:
Net pay
Pay Yourself First
Long-term savings
Disposable income
Which of the following is considered to be an asset?
Bank account
Apartment
Student loan
Cell phone contract
A detailed estimate of income and expenses for a specific period of time is known as a
Budget
Budget variance
Liability
Financial record
What is NOT considered to be a financial record?
Pay stub
Loan contract
Term paper
Insurance policy
What strategy should a person focus on when preparing a budget?
Understand their income
Assess what they own and what they owe
Review their goals
All of the these
What is principal?
The amount you save or invest that earns money, or increases in value, over time at an annual percentage rate
A type of insurance policy
The interest rate charged on a loan
The total amount of interest paid over the life of a loan
What is a savings?
The amount of money you put aside for future use
A type of loan from a bank
An expense you incur regularly
A method of calculating interest
What is a budget estimate?
A projection of income and expenses
A detailed financial report
A list of potential investors
A summary of past expenditures
What are financial records?
Documentation for financial transactions, such as pay stubs, receipts, bank statements, loan contracts, insurance policies, and investment statements
A type of musical record
A collection of historical documents
A type of financial software
What is net worth?
The value of all of your assets minus your liabilities
The total income you earn in a year
The amount of money you have in your savings account
The total value of your investments
The difference between assets and liabilities is:
Assets are what a company owns, and liabilities are what a company owes.
Assets are what a company owes, and liabilities are what a company owns.
Assets and liabilities are the same thing.
Assets are only physical items, while liabilities are only financial obligations.
The importance of having a budget is to:
manage expenses effectively
increase income
avoid all debts
spend without limits
Why is it important to get into the habit of paying yourself first?
It helps in building savings and financial security.
It allows you to spend more on luxury items.
It increases your monthly expenses.
It reduces the need for budgeting.
What is the difference between saving and investing?
Saving is for short-term goals, while investing is for long-term goals
There is no difference
Investing is only for rich people
Saving offers higher returns than investing
Why is it important to track your expenses?
To make sure you don't spend more than you have
It's not important
So you can brag to friends
To make your parents happy
