Budgeting & Saving Quiz

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Dining out at local restaurants

• Loan payment on a new car

• Expenses for new clothes

• Postponing a purchase for a big-screen TV

If you are trying to substantially reduce the amount you spend on food, you should try...

• Cooking your own food at home for as many meals as possible

• Dining at restaurants more often so you don't waste water doing dishes

• Eating more snacks on the go and way fewer meals at home

• Drinking more coffee and soda so you are not as hungry for food

Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

• Average rent for an apartment

• Food and grocery store options in the area

• Employment opportunities

• Average cost of Uber, Lyft, or taxi fare

Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?

• There are several public transportation routes between Greg's apartment and work

• The cost of public transportation is less than Greg’s monthly car payment

• Greg’s company covers half the cost of his monthly public transportation pass

• Using public transportation, Greg’s commute to work one-way is two hours

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

• His gross pay is $2,500 and net pay is $3,000

• His gross and net pay are $3,000

• His gross and net pay are $2,500

• His gross pay is $3,000 and net pay is $2,500

You are putting together your first post-graduation budget. Your net pay is $2,500 per month and you estimate that your monthly expenses will be $2,625. Which of the following is TRUE?

• You have an extra $125 each month that you can spend on a fun or leisure activity

• You can invest a portion of your monthly income into a retirement fund, as your expenses are well within your budget

• You need to either cut back on your spending or find an additional source of income to balance your budget

• You have room in your budget to make philanthropic donations to your favorite charity

All of the following are good budgeting strategies if you want to save money at the grocery store EXCEPT:

• Focusing on unit price when comparing similar products

• Building a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat

• Focusing only on the price when comparing similar products

• Preparing a grocery list before you go to the store and avoiding buying items that aren’t on the list

Which description is most accurate for a Zero-Based Budget?

• You put every dollar of your net pay into a budget category each month

• You save a fixed percentage of your income each month

• You only budget for essential expenses and save the rest

• You allocate funds based on previous spending habits

For two months in a row, Aaron realizes he has gone over budget by roughly $175. Which of these options makes the most sense for him to fix his problem?

• Cancel one of his streaming video subscriptions and go out to dinner three fewer times each month with friends

• Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing

• Contribute $100 less to savings each month and $75 less to his retirement fund

• Sell his current car and get a less expensive vehicle

Danaisha does all her grocery shopping at organic markets and has a monthly grocery bill of $325. Charles says that Danaisha is wasting her money on wants instead of focusing on needs. He buys in bulk, uses coupons, and shops at Save-More for a monthly bill of $195. Who's budgeting correctly for food?

• Danaisha, because she is focusing on her health, which will have a guaranteed payoff in the long run

• Charles, because he's taking efforts to save money by focusing on his needs only

• Both, because needs vs wants are determined on an individual basis

• Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Danaisha should cut her spending.