Budgeting Flashcard

Front

How much of your budget should you not exceed when budgeting for your NEEDS?

Back

30%.

Front

How much of your budget should be reserved for your WANTS?

Back

20%.

Front

How much of your budget should be reserved for Savings/Investing? Options: 10%, 20%, 30%, 50%

Back

10%

Front

A budget shows plans made about money earned and money spent. What is an advantage of following a budget?

Back

It helps people save money.

Front

This is a woman’s budget: She would like to begin saving $400 per month for retirement. How would choosing to save money for retirement most likely affect her budget?

Back

The woman would have to reduce her leisure spending, but would improve her future financial outlook.

Front

The largest percentage of a typical household budget is spent on: housing, entertainment, food, transportation

Back

housing

Front

What explains why Anthony failed to balance his budget this month? Options: He had unexpected fixed expenses., He spent too much on entertainment., He forgot to account for income taxes., He neglected to increase his gross income.

Back

He spent too much on entertainment.

Front

What is a Credit Score?

Back

A score given to you by the three credit bureaus based on your credit history.

Front

Credit cards can help build your credit history when __________________________.

Back

Consistently paid off on time.

Front

How does the Fair Credit Reporting Act help consumers?

Back

by allowing people to correct inaccurate credit files more easily