Chapter 6: Budget Review

Question 1

A plan for dividing your income among spending and saving options is a

Accepted Answer

budget

Question 2

If Bob's car payment is $172 per month, his annual budget amount for car payments would be

Accepted Answer

$2,064

Question 3

The life-span goals you set affect your family, future family, and community

Accepted Answer

True

Question 4

A successful budget requires accurate record keeping

Accepted Answer

True

Question 5

Which is a step in the budget process?

Accepted Answer

all of these

Question 6

Planning doc which you record expected & actual income and spending over a short time is a

Accepted Answer

budget worksheet

Question 7

Budgeting successfully depends on how well you set your financial

Accepted Answer

goals

Question 8

Stuffing all your receipts in a grocery bag is a good way to create an efficient filing system

Accepted Answer

False

Question 9

Fixed expenses are the amounts you have already committed to spend

Accepted Answer

True

Question 10

Flexible expenses are amounts that you choose to spend or not to spend

Accepted Answer

True

Question 11

John receives $10 per wk for allowance, $50 per wk from work. Total income for month would be

Accepted Answer

$240

Question 12

Many young people on their first jobs make the mistake trying to buy too many luxury items

Accepted Answer

True

Question 13

Which of the following would be considered a fixed expense?

Accepted Answer

car payment

Question 14

When making a budget, your goals should be prioritized and ranked

Accepted Answer

True

Question 15

Which of the following is not a luxury item?

Accepted Answer

denim jeans

Question 16

Adjusting a budget will be easier if you attempt to change flexible exp rather than fixed exp

Accepted Answer

True

Question 17

Important things you hope to achieve in more than one year are

Accepted Answer

long term goals

Question 18

If you want to cut your spending, you'll have to start with your fixed expenses

Accepted Answer

False

Question 19

If you spend $20 more for groceries each week than budgeted then you are "over" budget

Accepted Answer

True

Questions 19