Zero-Based Budgeting Quiz

What is the main principle of zero-based budgeting?

• Investing 15% in retirement

• Spending 50% on needs

• Saving 20% of your income

• Income minus expenses equals zero

Which app is recommended for creating a zero-based budget?

• Mint

• EveryDollar

• YNAB

• PocketGuard

Tags

CCSS.7.RP.A.3

What should be the first step in creating a zero-based budget?

• Make a new budget

• Track your expenses

• List your monthly income

• List your expenses

What percentage of your income is recommended for giving?

• 20%

• 5%

• 10%

• 15%

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What are the 'Four Walls' in budgeting?

• Income, expenses, savings, debt

• Savings, debt, insurance, entertainment

• Housing, food, insurance, savings

• Food, utilities, shelter, transportation

What should you do if your expenses exceed your income?

• Save less money

• Take a loan

• Ignore the budget

• Increase your income or reduce expenses

Tags

CCSS.7.EE.B.3

CCSS.7.EE.B.4

What is the purpose of a miscellaneous category in a budget?

• To save for retirement

• To cover unexpected expenses

• To invest in stocks

• To pay off debt

What is the first Baby Step in the 7 Baby Steps?

• Pay off all debt

• Build a fully funded emergency fund

• Save $1,000 for a starter emergency fund

• Invest 15% of income in retirement

What is a key disadvantage of the 50/30/20 budgeting rule?

• It is too flexible

• It focuses too much on savings

• It doesn't account for individual situations

• It requires too much math

What is the main focus of reverse budgeting?

• Paying off debt first

• Saving and investing first

• Spending first, saving second

• Balancing income and expenses