Budgeting Quiz

What is a budget?

• A record of all grades in school

• A plan for tracking weight loss

• A tool for tracking income and spending

• A way to plan for academic success in college

Budgets can be considered "road maps" for reaching

• Academic goals

• Financial goals

• Athletic goals

• Out to friends and family

Which of the following is needed for a budget to work?

• Time and commitment

• A phone app

• Help of a financial planner

• A college degree

Which of the following is NOT a benefit of a budget?

• Control of spending

• Lack of savings plan for the future

• Reduced stress

• Increased confidence

When creating a budget, it is important to

• Ignore savings goals

• Overlook fixed expenses

• Monitor current spending patterns

• Focus on wants rather than needs

Which type of income involves compensation received by employees for services performed and is usually computed by multiplying an hourly pay rate by number of hours?

• Salary

• Dividends

• Capital gains

• Wages

Which of the following is a consequence of NOT using a budget?

• Control of how you spend your money

• Increased confidence

• Reduced stress

• Being unprepared for emergencies

Which type of income involves compensation received by an employee for services performed which is a fixed sum paid for a specific period worked, usually weekly or monthly?

• Salary

• Dividends

• Wages

• Capital gains

Which of the following is NOT how a person creates a budget?

• Set future financial goals

• Only focus on variable expenses and ignore fixed expenses

• Monitor current spending patterns

• Review your financial progress

Which type of income are a portion of a company's profit paid to shareholders?

• Salary

• Capital gains

• Wages

• Dividends