CHP 3

Question 1

What does it mean to reconcile your bank account?

Accepted Answer

compare statement and check register to make sure they agree

Question 2

If you are struggling financially and are behind on your bills, what should you budget first?

Accepted Answer

Food

Question 3

What is the envelope system

Accepted Answer

Envelope divided into categories for spending

Question 4

How is a budget like a blueprint?

Accepted Answer

is is a plan for your money

Question 5

If you want to win with money, what must you know

Accepted Answer

what it is doing, how much you have, where your money is going

Question 6

Overdraft protection is free to use

Accepted Answer

false

Question 7

What is a typical overdraft fee?

Accepted Answer

$35

Question 8

True or false. Creating a budget will remove money fights.

Accepted Answer

True

Question 9

Why is it a problem if your budget is too complicated?

Accepted Answer

can be too complex and you won't follow it

Question 10

True or False. Banks want you to have a zero-based budget.

Accepted Answer

False

Question 11

At what age does Dave recommend getting a checking account?

Accepted Answer

13-15

Question 12

What should you do if you overspend in one particular budget category?

Accepted Answer

Adjust another category to make up for the difference

Question 13

What is an Outstanding Deposit?

Accepted Answer

deposit made at a bank but not yet shown on a bank statement

Question 14

On average, how long will it take before your budget begins to work?

Accepted Answer

3 months

Question 15

What is a budget?

Accepted Answer

A plan for spending and saving based on income and expenses

Question 16

Which of the following are reasons for a budget

Accepted Answer

managed money goes further, removes stress, will show you if you are overspending, removes "management by crisis"

Question 17

What is wrong with checking your balance at an ATM

Accepted Answer

not exact because it does not account for NSF

Question 18

In a zero-based budget, income minus outgo equals...

Accepted Answer

exactly zero

Question 19

What does it mean when your checking account is overdrawn?

Accepted Answer

You've spent more money than you have in the bank.

Question 20

Why are debit cards often considered Budget Busters?

Accepted Answer

It is easy to swipe your card and not keep up with $ spent

Question 21

How often do you create a budget

Accepted Answer

every month

Question 22

When finished comparing your bank account to your account register, what do you often discover?

Accepted Answer

The balance on each is different due to outstanding checks

Question 23

What is an outstanding check?

Accepted Answer

a check that the bank hasn't processed

CHP 3

Questions 23

CHP 3

Questions 23