Budget Building Quiz

What percentage of your total net income should be allocated to needs according to the 50/30/20 rule?

• 60%

• 50%

• 70%

• 40%

Which of the following is considered a 'want' in the 50/30/20 budgeting rule?

• Groceries

• Cellphone bill

• Dining out

• Housing

What is the recommended percentage of your total net income to be put into savings according to the 50/30/20 rule?

• 25%

• 10%

• 20%

• 15%

What are the three choices if your needs cost more than 50% of your total net income?

• Ignoring needs, ignoring wants, ignoring savings

• Increasing wants, sacrificing from savings, ignoring needs

• Finding cheaper options, earning more money, sacrificing from wants

• Borrowing money, sacrificing from needs, ignoring wants

Which category should you prioritize if your needs are too expensive in the 50/30/20 budgeting rule?

• Needs

• Wants

• Savings

• Both wants and savings

What is the purpose of saving for short-term future expenses according to the 50/30/20 rule?

• Covering unforeseen expenses

• Retiring

• Buying a house

• Paying off debts

What is the recommended duration for tracking your spending to get a full picture of your spending habits?

• 1 month

• 6 months

• 3 months

• 2 months

What is the recommended method for tracking your spending if you want total and complete control?

• Hiring a financial advisor

• Ignoring tracking

• Using online tools and apps

• Making an itemized spreadsheet

What should you do after tracking your spending for two months according to the 50/30/20 rule?

• Increase your needs, decrease your wants, ignore savings

• Make adjustments to trim down your needs, maximize your wants, stay on top of savings

• Ignore the tracking, continue spending as usual

• Start borrowing money to cover expenses

What is the main benefit of a well-built budget according to the 50/30/20 rule?

• Increased debt, inflexibility, inefficiency

• Increased borrowing, rigidity, ineffectiveness

• Increased security, flexibility, efficiency

• Increased spending, instability, waste