Budgeting Quiz

A fixed expense is (a)   .

• An expense that changes month-to-mo
• A cost that remains constant
• A cost that is unpredictable

Which of the following is typically a fixed expense?

• Dining out

• Mortgage payments

• Clothing purchases

How might fixed expenses vary?

• With every purchase

• They do not vary

• They may change occasionally, like with a rent increase

What should you do to budget for fixed expenses that occur less frequently, like car insurance paid twice a year?

• Ignore these until the payment is due

• Divide the total by the number of months until payment

• Add the full amount to your monthly budget

Which of these is an example of a variable expense?

• Car payments

• Utility bills

• Entertainment

Why might variable expenses be challenging to track?

• They do not occur regularly

• They are always the same

• They can be predicted exactly

What type of expense is groceries?

• Fixed

• Variable

• Neither

Which expense can be more easily adjusted?

• Rent

• Dining out

• Insurance premiums

What strategy does Bankrate suggest for managing income and expenses?

• The 70/20/10 rule

• The 50/30/20 rule

What should be covered first in your monthly budget?

• Entertainment expenses

• Essential expenses like housing and childcare

• Variable expenses