WorksheetsBudgeting and Saving part 1
Total questions: 50
Worksheet time: 2hrs 1mins
Which of the following elements is NOT part of the 50/30/20 Rule?
Wants
Needs
Car payments
Savings
What is the purpose of creating a budget?
To spend money lavishly
To track income and expenses
To limit financial goals
To ignore financial planning
How often should you update the document tracking your sources of income?
Annually
Quarterly
Monthly
Biweekly
What equation represents the relationship between savings, income, and expenses?
Savings = Income + Expenses
Savings = Income - Expenses
Savings = Income / Expenses
Savings = Expenses - Income
Which of the following is an example of a fixed expense?
Entertainment
Car repairs
Auto insurance
Dining out
What is discretionary income?
What a household or person has left after essentials have been paid, to invest, save, or spend
Money for essential purchases
Money spent on wants
Money spent on needs
How should you categorize your budget for prioritization?
Alphabetically
By size
By priority
Randomly
Which of the following is NOT a step in managing your budget effectively?
Checking it monthly
Writing down all your expenses
Ignoring technology
Categorizing expenses
What factor should you consider before deciding on transportation?
Weather conditions
Your favorite color
Your location
Public opinion
What is the importance of setting a budget for food?
To limit food consumption
To indulge in expensive meals
To avoid overspending
To prioritize entertainment
What is the purpose of comparison shopping practices?
To increase spending
To decrease choices
To make better financial choices
To ignore alternatives
Which term refers to manufactured items that have a lifespan longer than three years?
Durable Goods
Nondurable Goods
Fixed Goods
Variable Goods
What are some additional expenses to consider when budgeting for a house?
Pets
Water, Food, Clothing
Entertainment, Vacations, Jewelry
Gas, Maintenance, Repairs
How much of your monthly income is recommended to spend on a car payment?
Not more than 5%
Not more than 10%
Not more than 15%
Not more than 20%
What is a disadvantage of leasing a vehicle?
Lower down payment
Lower monthly payments
You will lease it forever
Restrictions on mileage
How often should you update your budget?
Weekly
Monthly
Annually
Biannually
Which one of the following is NOT a need?
Food
Shelter
Air
Cell phone
Should you spend ALL your money the same day that you get it?
Yes!
No!
Sure, why not?
What is a spending plan?
A. A tool used to record and track projected and actual income and expenses over time.
B. A method to increase income.
C. A way to avoid all expenses.
D. A strategy to invest in stocks.
What is unearned money?
A. Money received for no exchange.
B. Money earned from a job.
C. Money saved in a bank.
D. Money invested in stocks.
What are fixed expenses?
A. Expenses that vary every month.
B. Expenses that occur every period and are typically about the same amount.
C. Expenses that are optional.
D. Expenses that are unpredictable.
What is one reason consumers might feel a budget is restrictive?
A. It allows for more freedom.
B. It provides more options.
C. It limits how money can be spent.
D. It encourages wiser choices.
Which of the following is a way to reduce negative cash flow?
Buying items at full price
Doing comparison shopping
Making impulse decisions
Ignoring sales
What is the recommended percentage for Food and Household expenses?
10%
20%
30%
40%
What should be done with each envelope in the Envelope System?
It should be ignored
It should be labeled for the category of spending
It should be used for savings only
It should be left empty
What should be done once an envelope is empty in the Envelope System?
Continue spending
Refill it immediately
Stop spending in that category
Ignore it
What is the recommended percentage for Clothing and Personal expenses?
30%
20%
10%
40%
What is the recommended percentage for Saving and Investing?
10%
20%
30%
40%
Which of the following is NOT a way to reduce negative cash flow?
Avoiding impulse decisions
Buying items "on sale"
Eating at home
Ignoring sales
What is the first step in creating a personal budget plan?
Setting financial goals
Tracking spending habits
Listing all sources of income
Differentiating between needs and wants
What is personal financial planning?
something needed for survival
something you need to give up for a better option
a task that someone else performs for you
arranging to save, spend, and invest money
A budget is a plan for spending and saving money.
True
False
The goal of a budget is to SPEND less than you EARN.
True
False
The goal of a budget is to SPEND more than you SAVE.
True
False
Why is it important to keep a budget?
Budgets make sure you do not spend more money than you can afford.
Budgets can help you save for large purchases.
Budgets show you how much money you get and spend.
All of the above.
Which of the following best describes income?
Money given to a charity that helps others.
Money received for completing a chore or task.
Money received from a parent to pay for lunch.
Money spent on new clothes and shoes for school.
You go to the movies
Income
Expense
You get a present for friend’s birthday
Income
Expense
A budget is a list of
income and expenses
things to buy
how much to save
needs and wants
Which of the following is a benefit of having a personal savings plan?
People who save money can spend a lot of money right now.
People who save money can spend more money in the future.
Personal savings plans help people have an unbalanced budget.
Personal savings plans let people spend more time doing activities they enjoy
Mia wants a new phone, but she needs a new notebook for class. What should she do?
Buy the notebook and put away money for the phone.
Buy the phone and put away money for the notebook.
Buy the notebook and tell Moby to buy her the phone.
Buy the phone and use Moby's notebook for a while.
What is an example of an income?
Diego bought a video game
Litzy earned money for babysitting
Sevenmoon played at recess
Mateo saved money to buy a skateboard
What is a responsible money decision?
Chase got $50. He spent $75 on games
Victor sold his skateboard then gave away the money
Gracia earned $100 working. She spent $5 on lunch and saved the rest.
Andres earned $25 and spent all of it at the mall.
This table shows Lauren's October budget. What could Lauren do to balance her budget?
donate $25 more to the animal shelter, and earn an extra $30 by walking more dogs
spend only $30 at the harvest festival and $30 more at Blue World Aquarium
earn an extra $30 by walking more dogs, and spend only $30 at the harvest festival
spend $30 more at Blue World Aquarium and $15 less on treats from Berryland Bakery
This table shows John's September budget. What could John do to balance his budget?
decrease spending on the gift for his teacher by $5
rake leaves to earn an extra $20
increase spending on the gift for his teacher to $35
spend $35 less on art supplies
This table shows Herman's July budget. What could Herman do to balance his budget?
save $10 less for a car
increase spending at the amusement part by $15
spend only $30 at Twisty Cone ice cream shop
increase income from mowing lawns to $40
Saving provides money for:
emergency expenses
unplanned expenses next year
expenses in five years
all of the above
A spending plan can be made by:
keeping a diary of expenses
asking a friend to make it for you
deciding what to purchase when you go to the store
checking how much money is in your pocket
It is easier to return an item to the store if I have a sales receipt.
True
False
Which of the following is a responsible spending practice?
Spending more money than I have planned.
Buying an item that looks good to me, even if I do not need it.
Buying an item that is included in my spending plan.
Always shopping at the most expensive stores.
