A sum of money to be used for a particular purpose.

An example of paying yourself first is...

Have a portion of each pay direct deposited to your savings.

Which of the following are considered budgeting methods?

Zero-Based Budgeting, 50%, 30% & 20%

Which of the following is an example of buying something you NEED?

"I want to replace something that is no longer working."

Which of the following are TRUE about gross income and net income?

Gross income is the total amount earned before deductions, Net income is sometimes called "take home pay"

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9.1: Budgeting Knowledge Test

12 termsStudBud Administration52 plays

Created to test the current knowledge of students prior to instruction.

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Questions 12

Answers

1
Wages are paid on a hourly basis
True
False
2
This is the amount of money you make before deductions.
Earnings
Taxes
Net Pay
Gross Pay
3
What is a Budget?
A sum of money to be used for a particular purpose.
Having to write checks to buy things you cannot afford.
A list of things you want.
The sme thing as a savings account.
4
An example of paying yourself first is...
Have your entire paycheck direct deposited to your savings.
Pay your household expenses before spending on other things.
Have a portion of each pay direct deposited to your savings.
Spend first and save what's left
5
Which are true about creating a budget?
Keep track of exprenses and income to make a realistic budget.
Adjust flexible expenses and savings as needed
Your income less expenses and saving should = zero
All of the above
6
Budget item amounts that can be adjusted when needed.
Utilities
Phone Bill
Fixed Expenses
Flexible Expenses
7
___________ is a bank account where money is stored and returns a low interest rate.
Deposit Account
Savings Account
ATM
Checking Account
8
Salary describes what you earn on an annual basis
False
True
9
Which of the following are considered budgeting methods?
Zero-Based Budgeting
50%, 30% & 20%
Calculator Method
Don't Budget
10
Which of the following is an example of buying something you NEED?
"I'm feeling down, and I need to boost my spirits."
"I want to impress someone/ change how they feel about me."
"I don't want to miss out on these deals during the sale!"
"I want to replace something that is no longer working."
11
Which of the following are TRUE about gross income and net income?
Net income is the total amount earned before deductions
Gross income and net income are the same
Gross income is the total amount earned before deductions
Net income is sometimes called "take home pay"
12
What type of income are you supposed to use to create a budget?
Net Income
Savings Income
Gross Income
Parents Income

9.1: Budgeting Knowledge Test Flashcards | StudBud