WorksheetsChapter 2 Budgeting Basics
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Online budgeting apps are more effective than budgeting with pen and paper.
a)
True
b)
False
2.
How many categories should you have in your budget?
a)
15 or more
b)
No limit; use as many as you need to keep your budget accurate!
c)
No more than 10
d)
At least 3
3.
What is the envelope system?
a)
It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash.
b)
It's a systematic approach to budgeting with a digital app that organizes categories based on qualitative amounts.
c)
It's a way to budget that involves putting a credit card in each envelope to use for that category.
d)
It's a system that involves writing your entire budget on an envelope.
4.
Your money personality can affect your _____ .
a)
Attitude toward budgeting
b)
Choice of bank
c)
Personal values
d)
Ability to budget
5.
How many months does it usually take for your budget to start working as a budget should?
a)
Three
b)
Five
c)
Four
d)
One
6.
Why is budgeting so important?
a)
It's a good way to make sure all your money is spent by the end of the month.
b)
It helps you figure out the best way to justify purchases that maybe aren't necessary.
c)
It gives you control of your money and sets you up for financial success in the future.
d)
It helps you brush up on your math skills.
7.
If you get married, only one person is responsible for budgeting.
a)
True
b)
False
8.
What should you do if you overspend in one category of your budget?
a)
Adjust your budget by removing money from other spending categories.
b)
Just leave it. It will probably work out fine.
c)
Take money from the Giving category. You're giving to yourself!
d)
Ask a friend for the money you overspent.
9.
What is the key principle of a zero-based budget?
a)
You start with the previous year's budget and adjust based on new expenses
b)
You allocate funds based on your highest-priority expenses first and only budget for what remains
c)
You allocate every dollar of income to specific expenses, savings, or debt, with the goal of having zero unallocated funds at the end
d)
You set aside a fixed percentage of your income for giving, saving, and investing
10.
How often should you create a budget?
a)
Daily
b)
Weekly
c)
Monthly
d)
Biannually
11.
What is a way to stay accountable to reaching your financial goals?
a)
Finding a person you trust to help keep you on track with your money goals
b)
Hiring a financial advisor to make your decisions about money for you
c)
Looking at the budget you set at the end of the month
d)
Creating specific categories in your budget
12.
What are the Four Walls?
a)
Utilities, college fund, restaurants, and car insurance
b)
Cell phone bill, car insurance, shelter, and money for the movies
c)
Food, utilities, transportation, and college fund
d)
Food, utilities, shelter, and transportation
13.
Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of _____ they have.
a)
Money
b)
Debit cards
c)
Categories in their budget
d)
Personal debt
14.
Net income is the amount you get paid before taxes.
a)
True
b)
False
15.
When is the right time to start creating and living by a budget?
a)
Right now - it's never too early!
b)
When you start researching colleges and the costs that come along with it
c)
Once you have a job with an income
d)
When you decide it's time to buy a car
16.
Your monthly rent payment is an example of a variable expense.
a)
True
b)
False
17.
If you have an irregular income, budgeting won't work for you.
a)
True
b)
False
18.
The best way to budget is...
a)
By using a digital app
b)
Creating a spreadsheet
c)
The way that works best for you
d)
On Paper
19.
Although the majority of Americans think budgeting is important, about of Americans actually use a budget.
a)
75%
b)
50%
c)
23%
d)
35%
20.
Which of the following is NOT a component of a budget?
a)
Credit score
b)
Saving
c)
Income
d)
Giving
100 %
