Budgeting methods Quiz

Pretend you won $1,000 in a contest. Explain how much of this money you would allocate toward spending, saving, and other purposes and what led you to those decisions.

• Put 50% in savings and spend 50% on entertainment.

• Spend 50% on things I need and 30% on things I want.

• , things I Need 50% and things I Want 30% ,Save 20%

• Save all of it.

Explain the difference between a fixed expense and a variable expense.

• Fixed are things I cant live without, Variable are things I don't need.

• Fixed and variable are the same.

• Fixed are things I pay for,Variable are things I don't pay for.

• Fixed are the same every month, Variable change from month to month.

Categorize each of the following expenses into the correct group. Your cell phone bill: ________ (Fixed/Variable)

• Fixed

• Variable

Categorize each of the following expenses into the correct group. A restaurant: ________ (Fixed/Variable)

• Fixed

• Variable

Categorize each of the following expenses into the correct group. Your Netflix subscription: ________ (Fixed/Variable)

• Fixed

• Variable

Categorize each of the following expenses into the correct group. An emergency room bill: ________ (Fixed/Variable)

• Fixed

• Variable

Categorize each of the following expenses into the correct group. School supplies: ________ (Fixed/Variable)

• Fixed

• Variable

Briefly summarize the Pay Yourself First strategy.

• Save 20% first then spend.

• Buy what I need then save the rest.

• Save what is left over each month.

• Spend what ever I want.

The 50/30/20 budget recommends you spend 50% of your budget on needs.

• True

• False

• sometimes

Zero-based budgeting involves making sure every available dollar is accounted for. How is this beneficial for someone using this method?

• No confusion

• No errors

• Can't be adjusted

• Controlled each problem