Budgeting Quiz

A budgeting tactic that allows an individual to spend 50 percent on needs, 30 percent on wants, and 20 percent on savings.

• 50-30-20 Method

• Budget

• Fixed Expenses

• Discretionary Spending

A specific amount of money you aim to save for a particular purpose, like buying a new phone or saving for college.

• Budget

• Variable Expenses

• Savings Goal

• Debt

What is a practical first step in creating a personal budget?

• Estimating future income

• Reviewing past bank statements

• Setting up a new bank account

• Consulting a financial advisor

Tags

DOK Level 1: Recall

A plan for income and expenses during a set period

• 50-30-20 Method

• Variable Expenses

• Debt

• Budget

Regular, predictable expenses that are the same amount each time, like rent or a monthly subscription.

• Fixed Expenses

• Wants

• Discretionary Spending

• Savings Goal

The amount of money you owe to a lender you’ve borrowed from.

• A specific amount of money you aim to save for a particular purpose, like buying a new phone or saving for college.

• Wants

• Debt

• Expenses that can change in amount each time, like grocery bills or electricity costs.

Something an individual would like to have.

• Likes

• Wants

• Needs

• Passions

Money spent on non-essential items or activities that you enjoy, like eating out or buying video games.

• Savings Goal

• Debt

• Discretionary Spending

• Fixed Expenses

Expenses that can change in amount each time, like grocery bills or electricity costs.

• Fixed Expenses

• Emergency Fund

• Variable Expenses

• 50-30-20 Method

Something an individual must have to survive.

• Budget

• Wants

• Needs

• Debt