Budget Unit 3 Review

Creating a budget can make you feel powerful. Why?

• People who budget earn more money

• A budget puts you in control of your spending and saving

• You can't really budget unless you have an important job where others look up to you

• Budgeting is extremely easy, so once you set it up, you are done for good

Adda has just moved into her own apartment and is working full time. Each item below would go into her budget in the "Monthly Bills" category EXCEPT

• Cell phone

• Rent

• Clothing

• Renters Insurance

The two main portions of a budget are

• Income and expenses

• Spending cash and Online Bills

• Items you want and money to save

Why is it important to be able to decide if an item is a NEED or a WANT?

• Needs are worth spending money on, but you should never spend on a want

• Needs can be very expensive, but wants are usually far less expensive so you don't need to track them

• You cannot create a budget that has both needs and wants included -- you need them each in a separate budget

• When you budget, you should make sure all your needs are met first them you can decide to spend on wants

Ethan is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Ethan?

• He loves watching movies, and he's already paid for all the streaming services, so now he needs the data

• Unlimited data will allow him to play video games with his friends even when he's not at home and he LOVES video games

• He has so many social media accounts, and he needs to be able to check them throughout the day

• He has an hour long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online

Marshawn is trying to determine if an item at the mall is a NEED or a WANT. Which question will be most helpful?

• Will something bad happen if I don't have this item?

• Do any of my friends have this item?

• How happy will this item make me?

• Will my teachers be excited if I buy this item, or will they be disappointed?

Justine's part-time job pays her $8 per hour. She works for 10 hours this pay period. How much is her gross pay?

• $8

• $80

• $80 - any taxes she has to pay

• $8 + any taxes she has to pay

Complete this sentence: The federal government budgets its tax money on three large buckets of expenses -- mandatory spending, discretionary spending, and

• interest on debt

• the Constitution

• Free cable TV programs

• Budget funds

Brandon receives his paycheck, and it says his gross pay is $250 and his net pay is $200. How much money did he have in reductions this pay period?

• $50

• $200

• $250

• none

Why should you use your NET pay when creating a budget?

• Your net pay will always be higher so you'll have more money to spend

• Your net pay is a more accurate number of how much you have to spend

• You only know your net pay