WorksheetsUnit 8 Review (Budgeting)
Total questions: 29
Worksheet time: 15mins
Name
Class
Date
1.
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
2.
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
3.
For most Americans, which budget expense category is largest?
a)
Housing
b)
Food
c)
Transportation
d)
Clothes
4.
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
5.
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
6.
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
7.
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
8.
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
9.
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
10.
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
11.
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
12.
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
13.
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
14.
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
15.
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
16.
Marissa wants to sell her 5-year-old car. The car had an MSRP of $35,940. Marisa knows that the average annual depreciation of cars of her make and model is 20%. Estimate the resale value of Marissa’scar.
a)
$28,752
b)
$11,776
c)
$18,400
d)
$17,970
17.
Determine the resale value of a 5-year-old vehicle with an MSRP of $40,739 and an annual depreciation rate of 17%.
a)
$16,047.26
b)
$8,075.80
c)
$20,369.50
d)
$8,445.49
18.
Troy's GMC Yukon currently has a value of $18,575.00. His car depreciates at a rate of 8% annually. If he purchased it 5 years ago, what was the value of his car when he first got it?
a)
$29,700.43
b)
$32,901.52
c)
$28,183.00
d)
$48,009.00
19.
Antwaun wants to set aside 20% of his budget towards food. If his net pay* is $3600, how much money will he have set aside for food?
a)
$2880
b)
$3580
c)
$720
d)
$360
20.
Antwaun wants to purchase new photography equipment. He sees an advertisement on a store’s website for a 30% sale on 85mm lenses this weekend. If the original price of the lens he wanted is $700, what is the new price of the lens once it goes on sale?
a)
$490
b)
$670
c)
$210
d)
$599
21.
Gabriela has an apartment that costs 40% of her monthly budget, which is $4200. What is the amount of money she has leftover for other monthly expenses after she has paid rent?
a)
$4160
b)
$2520
c)
$1680
d)
$105
22.
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
23.
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
24.
You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?
a)
6 months
b)
1 year
c)
2 years
d)
3 years
25.
Which of these boxes of cereal has the LOWEST unit price?
a)
Cereal A, which costs $3.20 for a 16 oz. box
b)
Cereal B, which costs $5.00 for a 32 oz. box
c)
Cereal C, which costs $2.50 for a 10 oz. box
d)
Cereal D, which costs $4.50 for an 8 oz box
26.
Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
a)
His gross pay is $2,500 and net pay is $3,000
b)
His gross and net pay are $3,000
c)
His gross and net pay are $2,500
d)
His gross pay is $3,000 and net pay is $2,500
27.
You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates?
a)
Dining out
b)
Rent
c)
Cell phone bill
d)
Bedroom furniture
28.
Janine is considering what auto costs she is going to have after buying a new car. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership?
a)
Yes, these are the three costs she should expect to pay once she is a car owner
b)
No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.
c)
No, she needs to factor in other costs such as maintenance, emergency repairs, etc.
d)
No, she does not need to include the cost of gas as it is covered under her auto insurance policy
29.
What is one step you can take to adjust a budget for a limited income?
a)
Increase your spending on luxury items to feel more satisfied
b)
Prioritize essential expenses and cut back on non-essential spending
c)
Borrow money regularly to cover basic expenses
d)
Stop contributing to your emergency fund
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