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Budgeting Unit Test

Total questions: 25

Worksheet time: 2hrs 5mins

Name
Class
Date
1.

Which one these is an example of a "FINANCIAL GOAL"

a)

Graduating from college

b)

Becoming a teacher

c)

Learning to play an instrument

d)

Purchasing a new home

2.

Which of the following is NOT a good way to track your spending?

a)

In your head

b)

Notebook and pencil

c)

Envelope method

d)

Online software or app

3.

Which (THREE) could be considered some of the first steps in creating a personal budget plan?

a)

Setting financial goals

b)

Tracking spending habits

c)

Listing all sources of income

d)

Differentiating between needs and wants

4.

Creating a budget can make you feel powerful! Why?

a)

People who budget earn more money, so they can live a better life

b)

A budget puts you in control of your spending and saving, so you make good decisions and feel more confident

c)

You can't really budget unless you have an important job, which means that other people look up to you

d)

Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things

5.

Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...

a)

Cell phone plan

b)

Rent

c)

Clothing

d)

Electricity bill

6.

The two main portions of a budget are...

a)

the money coming in (income) and the money you're spending (expenses)

b)

the money coming in (exerts) and the money you're spending (inflow)

c)

the cash you are spending in stores and the bills you are paying online

d)

the items you want to buy and the money you need to save for retirement

7.

Why is it important to be able to decide if an item is a NEED or a WANT?

a)

Needs are worth spending money on, but you should never spend on a want

b)

Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them

c)

You cannot create a budget that has both needs and wants included -- you need them each in a separate budget

d)

When you budget, you should make sure all your needs are met first, then you can decide to spend on wants

8.

Which of the following is an example of buying something you NEED?

a)

"I want to replace something that is no longer working."

b)

"I want to impress someone/ change how they feel about me."

c)

"I'm feeling down, and I need to boost my spirits."

d)

"I don't want to miss out on these deals during the sale!"

9.

Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT...

a)

Cell phone plan

b)

Rent

c)

Clothing

d)

Electricity bill

10.

Ethan is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Ethan?

a)

He loves watching movies, and he's already paid for all the streaming services, so now he needs the data

b)

Unlimited data will allow him to play video games with his friends even when he's not at home, and he LOVES video games

c)
  1. He has an hour-long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online

d)
  1. He has so many social media accounts, and he needs to be able to check them throughout the day, even while in school

11.

Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

a)

Will something bad happen if I don’t have this item?

b)

Do any of my friends have this item?

c)

How happy will this item make me?

d)

Will my teachers be excited if I buy this item, or will they be disappointed?

12.

Justine’s part-time job pays her $8 per hour. She works for 10 hours this pay period. How much is her GROSS pay?

a)

$8

b)

$80

c)

$80, minus any taxes she has to pay

d)

$80, plus any taxes she has to pay

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)

$30

b)

$40

c)

$50

d)

$60

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.

Complete this sentence: The federal government budgets its tax money on three large buckets of expenses -- mandatory spending, discretionary spending, and .....

a)

interest on debt

b)

the Constitution

c)

budget funds

d)

free programming

16.

Three of these items represent services provided by the federal government using taxpayer money. Which one represents a personal expense instead?

a)

Military protection

b)

Medicare and Medicaid

c)

Social Security

d)

Free programming

17.

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

18.

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

19.

Mike budgets $250 per month for dining out. If he only spends $75 each week, how much over or under budget is he at the end of the month?

a)

$50 under budget

b)

$50 over budget

c)

$100 under budget

d)

$100 over budget

20.

What is the TOTAL TAX deduction taken from the employees check THIS PAY PERIOD?

a)

$163.76

b)

$391.52

c)

$539.24

d)

$705.33

21.

What is Stephen's PAY RATE? (how much does he make an hour?)

a)

$16.37

b)

$20.00

c)

$31.22

d)

$50.00

22.

How many hours did Stephen work during this pay period?

a)

40 hours

b)

30 hours

c)

20 hours

d)

10 hours

23.

Based on the earnings statement, what is the TOTAL DEDUCTION amount for this pay check?

a)

$0

b)

$50.00

c)

$692.24

d)

$15,921.52

24.

How much money has this employee earned in GROSS pay THIS PAY PERIOD

a)

$1,307.76

b)

$2,000.00

c)

$30,078.48

d)

$46,000.00

25.

Ms. Anako asks' the class "Can you explain what Gross Pay and Net Pay are? What's the big difference between the two? And how would you plan your budget based on your pay?" (Using AT LEAST 3 complete sentences) How do you respond?

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