Cash Envelope System Quiz

What is the primary benefit of using the cash envelope system over credit cards?

• It eliminates the need for budgeting.

• It offers cashback rewards.

• It makes you more aware of your spending habits.

• It allows for unlimited spending.

Which type of expenses should be included in the cash envelope system?

• Utility bills.

• Online subscriptions.

• Variable expenses like groceries.

• Fixed expenses like rent.

What should you do if you run out of money in a specific envelope before the month ends?

• Stop spending in that category until next month.

• Use a credit card to cover the expenses.

• Increase the budget for that envelope immediately.

• Borrow money from another envelope.

If you have leftover money in an envelope at the end of the month, what is a recommended action?

• Spend it on anything you want.

• Donate it to charity.

• Roll it over to the next month or save it.

• Ignore it and start fresh next month.

How should you handle unexpected expenses in the cash envelope system?

• Ignore them and hope for the best.

• Borrow money from friends or family.

• Use a credit card to cover them.

• Shuffle funds between envelopes and adjust your budget.