Budget Quiz

The best description of a budget is which of the following?

• A financial tool for consumers who have very little money.

• A plan for savings and spending your money.

• A set of restrictions on how to get a boat and jet ski before your neighbors

• A statement of your assets and liabilities.

Which of the following are the two largest categories for US consumer spending?

• Food and clothing

• Food and personal insurance

• Health care and utilities

• Housing and transportation

What percentage of Americans living paycheck to paycheck:

• 70%

• 25%

• 50%

• 40%

The zero-budget is the best method of budgeting because:

• This type of budget is less complicated than other types of budgets

• A zero-based budget allows less money for wants

• Sticking to a zero-based budget requires less discipline

• The zero-based budget ensures that every dollar you make is assigned a specific purpose

When it comes to managing money, success is about ________ % knowledge and ___________% behavior.

• 50, 50

• 60, 40

• 80, 20

• 20, 80

Which of the following is not one of three basic reasons for saving money?

• Emergency fund

• Large purchases

• Have money available to lend to friends

• Build wealth

Why is having a fully funded emergency fund so important when it comes to your financial well-being?

• As long as you have a good-paying job, you really don’t need am emergency fund

• The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.

• The purpose of an emergency fund is to have money set aside so that you never make large purchases, like vacations.

• None of the above

In which category should you have to make the most cuts in the budget?

• Savings

• Variable/Flexible Expenses

• Fixed Expenses

• Emergency Fund

In order to control his budget, Josh should cut spending in which of the following categories?

• Food/Entertainment

• Rent/Mortgage

• Savings/Emergency Fund

• Car/Insurance

Which of the following costs is; Rent?

• Fixed Cost

• Variable/ Flexible Cost

• Discretionary Cost