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WorksheetsBudgeting Basics
Total questions: 17
Worksheet time: 13mins
Which of the following is a key component to include when creating a monthly personal budget?
Household expenses
Net income
Savings
Debt payments
Why is it important to include an emergency fund in your monthly personal budget?
To prepare for unexpected expenses
To increase vacation funds
To avoid paying taxes
To reduce household costs
If you notice that your actual spending is higher than your planned budget, what is a logical next step?
Review and adjust your budget or spending habits
Ignore the difference; life happens
Cut all "wants" spending to zero
Stop tracking your expenses
What is the main purpose of a budget?
To plan your spending
To increase your spending
To avoid spending money
To track your spending
What is another term for "net worth"?
Income
Wealth
Salary
Money
If someone is said to be "worth $1,000,000," what does this mean?
They have $1,000,000 in cash
They have $1,000,000 in yearly income
They have at least $1,000,000 more assets than debt
They have $1,000,000 in financial investments
How can a person grow their wealth?
Buying a diverse range of assets
Building up savings and emergency funds
Using long-term savings for low-risk investments
Save as much money as possible and never go into debt
Why is investing important?
To fight inflation
To get rich fast
To prepare for being a business leader
To grow money over time
What does it mean if an expense is variable or non-recurring?
It is paid once a year
It does not change from month to month
It fluctuates from month to month
It is always a need
Why is it important to include "once in a while" expenses in your budget?
To avoid spending money on unnecessary items
To avoid not having money to pay for less frequent, but more expensive costs
To avoid the stress of "surprise" expenses
To reduce your regular expenses
If you are planning for a large purchase, such as a car or house, how can the "Pay Yourself First" strategy be useful?
It helps you spend more on luxury items
It encourages you to save regularly towards your goal
It eliminates the need for a budget
It allows you to build an emergency fund
Why might someone use historical estimates when creating a monthly budget?
To make good guesses at their expenses
To increase their income
To avoid paying taxes
To reduce their entertainment options
If someone earns $2,000 per month, how much should they ideally allocate to "wants" using the 50/30/20 rule?
$1,000
$600
$400
$300
Identify needs and wants.
Rent
Savings
Groceries
Netflix
Vacation
Electricity
Gym membership
Restaurants
Debt payments
Gas
Spotify
Starbucks
Someone who works different hours every week should do what when planning their income in their budget?
Assume income will be the same as their last paycheck
Plan for their paycheck to be on the lower end in case they had less hours than expected
Budget for 40 hour weeks because they even out over an entire month
Ask their boss if they can work overtime this week
Which is an example of a "once in a while", or non-recurring, expense?
Gas
Oil change
Tires
Car payment
Budgets should never be changed. Overspending is a personal problem, not a budgeting one.
True
False
