WorksheetsCreating a Personal Budget Review
Total questions: 31
Worksheet time: 16mins
Which of the following refers to personal belongings which have value?
Assets
Liabilities
Net worth
Net profit
Place the following steps of creating a monthly budget in the correct order.
1. Gather financial statements 2. Record all sources of income 3. Create a list of monthly expenses 4. Break expenses into fixed and flexible 5. Total monthly income and expenses 6. Adjust expenses 7. Review the budget
1. Record all sources of income 2. Gather financial statements 3. Create a list of monthly expenses 4. Break expenses into fixed and flexible 5. Total monthly income and expenses 6. Adjust expenses 7. Review the budget
1. Gather financial statements 2. Create a list of monthly expenses 3. Record all sources of income 4. Break expenses into fixed and flexible 5. Total monthly income and expenses 6. Adjust expenses 7. Review the budget
1. Gather financial statements 2. Record all sources of income 3. Break expenses into fixed and flexible 4. Create a list of monthly expenses 5. Total monthly income and expenses 6. Adjust expenses 7. Review the budget
__________ is a personal asset.
Credit card balance
Mortgage
Cash
Rent
Saoirse has total assets of 120,000andtotalliabilitiesof 80,000. What is her net worth?
$30,000
$40,000
$50,000
$60,000
Which of the following are itemized summaries of the expected income and expenses for a defined period, typically one month?
Assets
Liabilities
Budgets
Finances
Which would be considered a short-term goal?
Saving for college
Saving for retirement
Starting a new career
Saving for a family vacation
Personal financial planning is the process of creating a ________ to spend and save ________. It also allows people to determine whether they will have enough money for their ________, and it allows people to spend and save with ________.
financial plan, money, needs and wants, confidence
shopping list, time, dreams and wishes, uncertainty
budget, energy, goals and fears, hesitation
schedule, resources, expenses and income, doubt
Budgets rely on balance.
True
False
Which of the following refers to individuals who do not consider money as a necessity and do not have much of an opinion on money?
Flyers
Security seekers
Risk takers
Spenders
In SMART, the “A” stands for “attainable.”
True
False
Which piece of SMART goal setting requires individuals to set a concrete number to assess whether the goal is completed?
Specific
Measurable
Time-based
Reliable
Which would be considered a long-term financial goal?
Paying a specific amount on a credit card
Saving for a retirement fund
Buying a new car
Reviewing the plan
Which step of the financial planning process involves devising strategies to help accomplish financial goals?
A. Determining the financial situation
B. Identifying courses of action
C. Finalizing the plan
D. Reviewing the plan
Which of the following is the last step in creating a personal financial plan?
Balancing income and expenses
Creating financial goals
Implementing the budget
Revising the plan
Fill in the blanks using the word bank provided below.
Common __________ include ensuring expenses are not more than __________, separating __________ from wants, remembering __________ refer to all __________ of money and creating an __________.
income, expenses, budget strategies, needs, outflow, emergency fund
needs, expenses, income, outflow, budget strategies, emergency fund
expenses, emergency fund, needs, outflow, expenses, budget strategies
budget strategies, income, needs, expenses, outflow, emergency fund
Callum is the type of person who likes to plan for the future and be prepared for any type of financial situation, Callum is most likely a __________.
Saver
Spender
Risk Taker
Security seeker
__________ is the first step an individual should take when creating a financial plan.
Setting financial goals
Determining the financial situation
Identifying courses of action
Evaluation alternatives
__________ is the sum of the individual’s current assets minus the individual’s total liabilities.
Net worth
Net Profit
Net revenue
Net wealth
Individuals who like to save money rather than spend money
Saver
Spender
Risk Taker
Money Personalities
Individuals who enjoy spending money on themselves and others
Saver
Spender
Risk Taker
Money Personalities
Individuals who enjoy investing money in high-risk ventures
Saver
Spender
Risk taker
Money Personalities
Categories in which people can be put based on their spending and saving habits
Saver
Spender
Risk Taker
Money Personalities
Expenditures which are essential for an individual to live and function
Spending needs
Liabilities
Budgeting
Spending Wants
Individual’s expenses and outstanding debts
Spending Needs
Liabilites
Budgeting
Spending wants
Process of creating a plan to spend and save money
Spending needs
Liabilites
Budgeting
Spending wants
Expenses which help an individual to live more comfortably
Spending
Liabilities
Bedgetting
Spending wants
Which of the following is the sum of the individual’s current assets minus the individual’s total liabilities?
Variable expenses
Liquid assets
Net worth
Budget
__________ are goals which can be achieved in less than a year’s time.
Short-term goals
Intermediate-term goals
Long-term goals
Lifetime goals
The “M” in the goal-setting acronym, SMART, stands for “Manageable.”
True
False
Select all of the following which are classified as spending needs.
Electricity bill
Grocery bill
Movie tickets
Rent for a home
Based on the 50/30/20 rule for allocating resources, which of the following percentages should be devoted to savings?
50
30
20
0
