How can the college you choose to attend impact your future adult budget?

Any student loans you owe will become an expense in your budget

Which item below would MOST PEOPLE consider a need and why?

Auto insurance--to minimize financial risk if in an accident

Which formula represents the math used to create a basic budget?

(sum of all income) - (sum of all expenses)

Why is it important to create a budge as a teenager?

A budget will help you save money and prioritize your spending

John has a salary of $3000 and after taxes, his take-home pay is $2500. Which statement below is correct?

His gross pay is $3000 and his net pay is $2500

If you have a budget deficit, which question is MOST helpful?

Will there be a bad consequence if I don't buy this item?

How can completing a budget be beneficial to your health?

A budget reduces mental and emotional stress

How are savings and budgeting related?

A good budget helps control spending and enables higher saving

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

Needs, savings, high priority wants, low priority wants

If your employee compensation is structured as a salary . . .

you have agreed to work for a predetermined amount of money

What does it mean to "pay yourself first"?

Auto-deposit a set amount of money into savings

Why is it important to budget using your net pay, rather than your gross pay?

Your net will account for taxes and deductions

Which formula best represents the math used to determine your net pay?

Gross pay - taxes - other deductions

Which piece of advice around saving and budgeting is BEST?

Budget for savings first, then your other expenses with the remaining money

Why is a Zero-Based Budget called Zero-Based Budget?

Your budget's income and expenses total to exactly $0

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Budgeting

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Questions 20

Answers

1
How can the college you choose to attend impact your future adult budget?
Your scholarship money will impact your taxes for years to come
Students who attend expensive colleges will earn more
The budget you create during freshman year will be the same until age 30
Any student loans you owe will become an expense in your budget
2
Which item below would MOST PEOPLE consider a need and why?
New laptop every 2 years--to work quickly and efficiently
Auto insurance--to minimize financial risk if in an accident
SAT prep--to guarantee a high score and college admissions
Week's vacation--to decompress from the stress of work/school
3
Which formula represents the math used to create a basic budget?
(income + taxes + insurance) - expenses
surplus - deficit
gross income - net income
(sum of all income) - (sum of all expenses)
4
Why is it important to create a budge as a teenager?
A budget will guarantee you have enough money saved for college
A budget will help you save money and prioritize your spending
A budget is required to qualify for financial aid for college
A budget makes filing your taxes faster and simpler
5
For most American households, the largest expenses in their budget will likely be . . .
Food, housing, transportation
Clothes, entertainment, food
Food, insurance, transportation
Clothes, food, housing
6
If you are following a 50/30/20 Budget, what two items fall into the 20 category?
Wants and needs
Savings and debt repayment
Income and expenses
Fixed and variable costs
7
John has a salary of $3000 and after taxes, his take-home pay is $2500. Which statement below is correct?
His gross pay is $3000 and his net pay is $2500
His gross pay is $2500 and his net pay is $3000
His gross and net pay are $3000
His gross and net pay are $2500
8
If you have a budget deficit, which question is MOST helpful?
Does this item make me happy?
Will this item last more than one year?
Do all of my friends have this item?
Will there be a bad consequence if I don't buy this item?
9
The most common time frame individuals use when developing a budget is
weekly
monthly
daily
yearly
10
Which of these typically represents a fixed cost in a monthly budget?
Car maintenance
Rent or mortgage
Dining out
Groceries
11
How can completing a budget be beneficial to your health?
A budget reduces mental and emotional stress
A budget increases your heart rate
A budget increases your income
A budget reduces your insurance premiums
12
How are savings and budgeting related?
A good budget helps control spending and enables higher saving
Savings is the final amount of money leftover in any monthly budget
Once you save enough money, you don't need a budget
The more money you save, the more income you have to spend
13
When creating a budget, which list below portrays expense categories in the most responsible order?
Savings, high priority wants, low priority wants, needs
Needs, savings, high priority wants, low priority wants
Needs, high priority wants, savings, low priority wants
Needs, high priority wants, low priority wants, savings
14
If your employee compensation is structured as a salary . . .
you will always out-earn someone who is paid a wage instead
you will not have taxes removed from each paycheck
you have agreed to work for a predetermined amount of money
you will earn more for each additional hour you work
15
What does it mean to "pay yourself first"?
Do all the budgeting at the beginning of the month rather than the end
Set aside some fun money each month to yourself
Be self-employed, so you're the boss and can keep all of the income
Auto-deposit a set amount of money into savings
16
Why is it important to budget using your net pay, rather than your gross pay?
Your net will account for taxes and deductions
Net pay is for teenagers and gross pay is for adults
Your net will be higher
Your total tax bill will be lower if you budget using net pay
17
Which formula best represents the math used to determine your net pay?
Gross pay - salary
Gross pay - taxes
Total hours worked X wage
Gross pay - taxes - other deductions
18
Which style of budget is best suited for someone who overspends on their wants by using their credit card?
50/30/20
Cash envelope
Zero-Based
Wealth management
19
Which piece of advice around saving and budgeting is BEST?
Use a budget each month, but do your savings one time per year
Budget for savings first, then your other expenses with the remaining money
If you end up with a surplus at the the end of the month, put it in savings
If you have a budget, you don't need to save
20
Why is a Zero-Based Budget called Zero-Based Budget?
Your budget's income and expenses total to exactly $0
It requires 0 knowledge of budgeting skills
Your checking account balance goes to $0 every month
It's the best budget to use if you have $0 in your savings account

Budgeting Flashcards | StudBud