Unit 6 - Budgeting

Cooking your own food at home for as many meals as possible will substantially reduce the amount you spend on food.

• True
• False

You are putting together your first post-graduation budget. Your take-home pay will be $2,000 per month. You estimate your monthly costs to be rent of $600, car payment of $250, car insurance of $100, car maintenance of $50, entertainment of $400, food expense of $250, mobile phone of $75, student loan payment of $125 and other expense of $250. How would you describe your budget after analyzing all of your income and expenses?

• You have a surplus of $100
• You have a deficit of $100
• You have a deficit of $2,100
• You have a surplus of $4,100

You are approved for a lease on an apartment, what will you need to pay/bring for the first month. (Check all that apply)

• First month's rent
• Security Deposit
• Rent payment for the first three months
• An additional list of references and copies of your last three tax filings
• A $500 bonus payment for awarding you the apartment

For most Americans, which budget expense category is largest?

• Housing
• Food
• Transportation
• Clothes

You're considering moving into a 2-bedroom apartment with 1 roommate rather than living on your own post-college. Which of your expenses would likely NOT change by having a roommate?

• Renters insurance
• Cell phone bill
• Student loan payment
• Grocery Bill
• Internet bill

In a zero based budget you put every dollar of your take-home pay into a budget category each month.

• True
• False

When you are self employed who pays your health insurance?

• Each person you work for
• The government pays for it
• The Google and Apple app stores
• You have to fund it yourself.

Which of the following statements are true about the relationship between net pay and gross pay?

• Gross pay is for hourly workers, while net pay is for salaried employees
• Gross pay is always higher, while net pay is always lower
• Gross pay is the total you earned, while net pay has taxes deducted
• Gross pay is used for spending, while net pay is used for budgeting

Which one of these expenses most likely represents a VARIABLE cost in someone's budget? (one that can change month to month based on net pay)

• Electricity bill
• Gas for car
• Groceries
• Rent
• Car insurance premium

When creating a budget they recommend "paying yourself first." What does that mean?

• Become self-employed so you're paying yourself instead of being paid by an employer
• Set aside a percentage of your paycheck into a savings account before you start spending
• Spend your regular paycheck on needs and wants but funnel any extra money into saving
• Wait until the end of the month to determine how much you have leftover to save