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All Budgeting Questions — Worksheet Extraction

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

In order to live on a monthly budget, a person should

a)

Invest in the stock market

b)

Use the Rule 72

c)

Be a risk taker and be charitable

d)

Be responsible and use restraint

2.

A budget should include a person's:

a)

gross income and assets

b)

investment portfolio

c)

net income and expenses

d)

credit score

3.

What does the phrase, "pay yourself first," mean?

a)

spend all the money you can

b)

save all the money you can

c)

set aside money for savings each month BEFORE paying any other bills

d)

give away all the money you can

4.

A woman is offered two jobs; one with a salary of 27,000plusbenefitsandtheotherat27,000 plus benefits and the other at 30,000 with no benefits. It would be a wise financial decision for her to take the:

a)

$27,000 job, because her taxes will be lower

b)

27,000job,ifthebenefitspackageisworthmorethanthe27,000 job, if the benefits package is worth more than the 3,000 difference in salary

c)

$30,000 job, since she has no need for medical benefits because she is healthy

d)

$30,000 job, because if she is making a higher salary, she is guaranteed quarterly sales increases

5.

If you and your spouse have another baby, how can you increase your net pay?

a)

update your W-2

b)

increase the exemptions on your W-4

c)

hope for a raise

d)

updated your 1099-I

6.

How can individuals be prepared for losing their job or having a large medical expense?

a)

maintain a checking account with sufficient funds

b)

pay credit card bills on time

c)

prepare a budget

d)

save at least three months of income

7.

What action should a person take who must make a tuition payment at the end of August each year?

a)

decide how much money will be needed and then place 1/12th of that amount in a separate account each month

b)

divide the total amount of money that will be needed into 12 equal parts and invest that amount in stocks

c)

obtain a short-term collateralized loan for the needed amount of money

d)

plan to open a new credit card account that will be used to charge the needed amount of money

8.

A man budgeted 200amonthforclothing.Thismonththemanspent200 a month for clothing. This month the man spent 150 on clothing therefore that budget item is considered to have

a)

a budget deficit

b)

an overflow deficit

c)

an income overage

d)

a budget variance

9.

What does a well designed, successful financial plan include?

a)

Bank statements

b)

Wants and needs

c)

Retirement planning

d)

Unexpected income

10.

Which of the following will help you the least in managing your money?

a)

get advice from your friends

b)

pay your rent/mortgage payment and utility bills on time

c)

set goals and keep a budget for your net income

d)

plan ahead for large expenses, shop with a list, and resist impulse buying

11.

Financial planning helps individuals to:

a)

have strategies for saving and investing

b)

guarantee future income

c)

achieve all goals by set target dates

d)

eliminate risk on investments

12.

In creating her budget, Ann realizes that her expenses exceed her income. Ann should immediately try to:

a)

apply for a loan

b)

open an IRA account

c)

reduce or eliminate some expenses

d)

ignore her budget until she has more income