Budgeting

Which of the following are TRUE about gross income and net income?

• They are the same thing

• Gross income is the total amount earned AFTER deductions

• Gross income is the total amount earned BEFORE deductions

• Net income is the total amount earned BEFORE deductions

Which of the following may NOT always appear on your paycheck stub?

• Gross Pay

• Net Pay

• Your Role/Title

• Local Tax

How does the 50/30/20 rule of thumb for budgeting allocate your income?

• 50% Needs, 30% Wants, 20% Savings & Debt Repayment

• 50% Wants, 30% Needs, 20% Savings & Debt Repayment

• 50% Savings & Debt Repayment, 30% Wants, 20% Needs

• 50% Needs, 30% Savings & Debt Repayment, 20% Wants

Which of the following is an example of buying something you NEED?

• "I want to replace something that is no longer working."

• "I want to impress someone/ change how they feel about me."

• "I'm feeling down, and I need to boost my spirits."

• "I don't want to miss out on these deals during the sale!"

Doing a budget DOES NOT:

• Make overspending more likely

• Make your money go further

• Show if you are overspending in an area

• Remove guilt and shame sometimes associated with a purchase

A written budget, if followed, removes ________ from your finances. 

• Guilt 
• Management by crisis
• Overspending 
• All of these 

Things you have to have; these are essential

• Needs

• Wants

• Gross Pay

• Expenses

Things you would like to have; they are not absolutely necessary, but they would be nice to have

• Wants

• Needs

• Net Pay

• Bills

Money received on a regular basis

• Income

• Expenses

• 50/30/20 Rule

• Budget

The cost required to pay for something

• Expenses

• Savings

• Income Taxes

• Allowance