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Budgeting - Financial Planning and Decision Making Flashcards | StudBud
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Budgeting - Financial Planning and Decision Making
Budgeting - Financial Planning and Decision Making
20 terms
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StudBud Administration
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271 plays
#budgeting #financialdecisions #plannning
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
The positive amount left in your budget after all expenses are paid
Balance
Deficit
Surplus
Allowance
2
You should only update your budget once a year
True
False
3
What is left of your income after taxes and deductions are taken out
Disposable
Gross Income
Discretionary Income
Net Income
4
Why is it harder to estimate expenses than to estimate income?
Income is more consistent month to month
Expenses can change more often month to month
Money tracking is hard
The responsibility
5
What percentage should your housing payment be from your total income?
20-40%
20% or less
40-60%
100%
6
What is the last step in the financial planning process?
Develop a timeline
Set Goals
Implement and Evaluate
Gather information
7
These expenses change month to month
Necessary expenses
Irregular expenses
Fixed expenses
variable expenses
8
When estimating income, it is better to be...
A little high (overestimate)
None of these are correct
Either under or over, it doesn't matter
A little low (underestimate)
9
Making an economic or financial decision to choose one thing over another is known as
Instant Gratification
An Asset
A Trade Off
A Liability
10
What is a good rule to go by, when it comes to budgeting?
Pay yourself first
Pay your bills on credit
Go shopping before anything else
Save more than half of all your paychecks
11
Expenses that stay the same month to month?
Variable
Emergency
Flexible
Fixed
12
All the money you make before taxes or other required deductions are taken out
Net Income
Gross Income
Total Income
Fixed Income
13
Which one of the following are REQUIRED deductions from your gross income?
Social Security, Medicare and Federal, State, and Local Taxes
Life and Health Insurance
Federal, State and Local Taxes
Social Security and Medicare Taxes
14
The movement of your money income - expenses = ? (Incoming and outgoing cash)
Account activity
Net Worth
Spending Frequency
Cash Flow
15
Example of irregular or uneven income?
A graduation gift
All of these
A part time job
A full - time job
16
Example of a fixed expense?
Rent / Mortgage Payment
Personal care products
Clothing
Food
17
What is NOT a money management skill?
Saving for emergency
Managing your time and social life in a healthy manner
Estimating expenses
Formulating a budget
18
To determine a person's
net worth
, you need to determine which of the following?
Income and Expenses
Salary and Taxes
Assets and Liabilities
I have no clue, Ms. Lynch
19
What is the number one reason many people choose not to budget?
They make 100K or more
Laziness
No family
Fear
20
How much should you put into SAVINGS each month
Save $50 from every paycheck
The spare change from your pocket
Up to 10% from your net income every month
3-6 months worth
