PFL Review

Which of the following is considered a fixed expense?

• Groceries

• Mortgage payment

• Entertainment

• Gasoline

What percentage of your income is commonly recommended to be saved each month?

• 5%

• 10%

• 15%

• 25%

A budget helps you to:

• Spend more money

• Save money and manage expenses

• Avoid all debt

• Never pay taxes

Which expense category is typically the largest in a household budget?

• Transportation

• Groceries

• Housing

• Entertainment

True or False: Variable expenses are costs that change from month to month.

• True

• False

Which of the following is an example of a variable expense?

• Rent

• Utility bill

• Car payment

• Property taxes

What is an expense?

• Money saved

• Money spent

• Money borrowed

• None of the above

What is the 50/30/20 rule in budgeting?

• 50% needs, 30% savings, 20% wants

• 50% needs, 30% wants, 20% savings

• 50% savings, 30% wants, 20% needs

• 50% wants, 30% needs, 20% savings

Which of these is a strategy to avoid impulse buying?

• Make a list before shopping

• Shop when you're hungry

• Use a credit card for all purchases

• Shop without a budget

What is the purpose of a W-4 form?

• To report income

• To determine the amount of taxes to withhold

• To file tax returns

• To apply for a job