Mastering Your Budget Basics

What is a budget?

• A plan for how to spend your money

• A list of all your debts

• A record of past expenses

• A savings account

Which of the following best describes the 50/30/20 rule?

• 50% needs, 30% wants, 20% savings

• 50% savings, 30% needs, 20% wants

• 50% wants, 30% savings, 20% needs

• 50% needs, 30% savings, 20% wants

Which of the following is considered a "need"?

• Dining out

• Rent or mortgage

• Streaming services

• Vacation

Which of the following is an example of a "want"?

• Groceries

• Health insurance

• New smartphone

• Utility bills

What is a savings goal?

• A plan to spend all your income

• A target amount of money to save for future needs or wants

• A list of items to purchase

• A method to track daily expenses

Which of the following is an example of a savings goal?

• Buying groceries

• Paying monthly rent

• Saving for a vacation

• Purchasing a new outfit

What is cash stuffing?

• Using credit cards for all purchases

• Allocating cash into envelopes for different spending categories

• Investing all your money in stocks

• Keeping all your money in a single bank account

Which of the following is a benefit of cash stuffing?

• Encourages overspending

• Helps track and control spending

• Increases credit card debt

• Reduces savings

How should you budget for unexpected expenses?

• Ignore them and hope they don't happen

• Use credit cards to cover them

• Set aside a portion of your income as an emergency fund

• Borrow money from friends or family

Which of the following is a good practice for budgeting expenses?

• Spend first, save later

• Track your expenses regularly

• Avoid making a budget

• Only budget for wants