Budgeting Bell Ringer 1

When creating a budget, which list below portrays expense categories in the most responsible order?

• All of your needs, high priority wants, low priority wants, savings

• All of your needs, savings, high priority wants, low priority wants

• All of your needs, high priority wants, savings, low priority wants

• Savings, high priority wants, low priority wants, all of your needs

Why is it important to create a budget?

• A budget is a necessary to qualify for loans and credit cards

• A budget makes filing your taxes faster and simpler

• A budget will help you save money and prioritize your spending

• A budget will guarantee you have enough money saved for college so you won't need loans

Which of the following situations is an example of net pay?

• Brian multiplies his hourly wage by his total hours worked

• Chrissy multiplies their hourly wage by their total hours worked and subtracts taxes

• Timothy multiplies his hourly wage by his total hours worked then subtracts taxes and deductions

• Helene multiplies her hourly wage by her total hours worked then subtracts taxes, deductions, and budgeted needs

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 overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT:

• A budget can help you identify any bad spending habits

• Using a budget can allow you to work towards your financial goals

• Having a budget can help you create an emergency fund

• Having a budget is a requirement for obtaining a mortgage

Now that Sanjana is done with college, she is trying to decide whether or not she should buy a new laptop for herself. She has made a preliminary list of questions she can ask herself to determine if the new laptop is a need or a want. Which of the following questions would you ELIMINATE from this list?

• Can I afford this laptop right now?

• Is this the right time to buy this laptop or will it likely be on sale later?

• What model laptop is trendy right now with people my age?

• How am I going to pay for this laptop? If I have to charge it or take out a loan, can I afford the monthly payments?