Personal Finance Unit 2 Review

Which of the follwoing is not a component of a budget?

• Saving

• Income

• Giving

• Credit Score

Online budgeting apps are more effective than budgeting with a pen and paper.

• True

• False

Although the majority of Americans think budgeting is important, about ____ of Americans actually use a budget.

• 23%

• 35%

• 50%

• 75%

How often should you create a budget?

• Weekly

• Daily

• Monthly

• Biannually

How many categories should you have in your budget?

• At least 3

• 15 or more

• No limit, use as many as you need to keep your budget accurate

• No more than 10

What are the Four Walls?

• Food, utilities, shelter, and transportation.

• Food, utilities, transportation and college fund.

• Cell phone bill, car insurance, shelter, and money for the movies.

• Utilities, college fund, restaurants, and car insurance.

If you get married, only one person is responsible for budgeting.

• True

• False

What does a budget show you?

• How much you need to earn

• How much you need to save

• How much money you spent last month

• How much money you plan to come in and go out during the month

How many months does it usually take for your budget to start working as a budget should?

• One

• Three

• Four

• Five

A budget says what will happen with your money, while a cash flow statement shows what already happened.

• True

• False