Budgeting Quiz

What is a budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment?

• Cash envelope budget

• Zero Based budget

• 50/30/20 budget

Which term describes a PLAN of your expected income and how you will use it to meet your expected expenses over a period of time?

• Budget

• Wants

• Utilities

Which budgeting method involves taking out money for monthly spending in cash and placing it in labeled envelopes according to budget categories?

• Zero Based budget

• Cash envelope budget

• Variable expense

What is the term for expenses that do not change from month to month?

• Variable expense

• Fixed expense

What is the term for the things you desire but do not necessarily need?

• Needs

• Wants

• Emergency fund

What is the term for the things you must have to survive?

• Wants

• Needs

• Utilities

What is the term for setting aside money for unexpected expenses or emergencies?

• Emergency fund

• Pay yourself first

• Wants

What is the concept of prioritizing saving and investing before spending on other expenses?

• Pay yourself first

• Zero Based budget

• Variable expense

Which term refers to a financial plan that helps you manage your money, track your spending, and save for future goals?

• Budget

• Wants

• Needs

What is the term for the practice of categorizing and managing your spending to ensure you do not exceed your income?

• Budgeting

• Wants

• Emergency fund