WorksheetsBudgeting 6.3 & 6.4 Test
Total questions: 9
Worksheet time: 5mins
The purpose of a budget worksheet is to:
Track and manage income and expenses
Increase monthly income automatically
Eliminate all financial risks
Preparing a budget worksheet involves trade-offs because:
You must prioritize certain expenses over others due to limited resources.
It allows unlimited spending without consequences.
It eliminates the need to track spending.
The steps in preparing a budget worksheet include which of the following?
Identifying income and expenses, listing them, and calculating totals
Ignoring expenses and only tracking income
Estimating expenses without recording income
Using your previous income and spending records can help you prepare a budget worksheet by:
Identifying spending patterns and setting realistic budget limits.
Ignoring past expenses and focusing only on future income.
Relying solely on credit card offers for budgeting.
The Over or Under column of the worksheet tells you:
whether the actual amount is more or less than the budgeted amount
the names of the accounts used
the due dates for payments
6. A budget must balance because:
it ensures you do not spend more than you earn.
it allows you to ignore your expenses.
it guarantees you will become wealthy.
To adjust your budget if it doesn’t balance, you should:
Reduce expenses or increase income.
Borrow more money to cover the difference.
Stop tracking your budget altogether.
Reviewing your budget at least once a year is important because:
your financial situation and goals may change over time.
it guarantees you will save more money.
it eliminates the need to track expenses.
Planning a family budget together can provide which of the following benefits?
Improved financial management
Increased family arguments
Reduced communication among family members
