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Chapter 3: Budgeting Flashcards | StudBud
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Chapter 3: Budgeting
Chapter 3: Budgeting
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A review of Chapter 3 #Budgeting from Dave Ramsey's #FoundationsinPersonalFinance
Flashcards
35 cards
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Practice quiz
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Host live
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Questions
35
Answers
1
A written budget, if followed, removes ________ from your finances.
A) Overspending
B) Guilt
D) All of the above
C) Management by crisis
2
A debit card cannot be used for online purchases.
False
True
3
The number-one cause of divorce in North America today is stress and disagreements over money.
False
True
4
Assigns an expense to every dollar of your income, the income minus the expenses equals zero
zero-spending plan
overdraft
reconcile
zero-based budget
5
Online bill pay allows you to pay without having to write a check and send it in the mail.
True
False
6
The following are guidelines for budgeting with an irregular income except:
D) When your check comes in, spend your money down the list.
A) Prioritize the list in order of importance.
C) Budgeting with irregular income isn't any different
B) Make a list of all of your expenses for the month ahead.
7
Series of envelopes that are divided into categories and are used for cash for expenses
envelope system
overdraft
reconcile
check carbon
8
A written cash flow plan
sale item
budget
envelope system
personal finance
9
Budgeting is crucial to your financial success.
False
True
10
Non-essential expenses
variable
fixed
intermittent
discretionary
11
If you write a zero-based budget every month, it is not necessary to reconcile your account.
False
True
12
Your monthly budget should include:
D) All of the above
A) Variable expenses
C) Fixed expenses
B) Discretionary expenses
13
A summary of all the income and outgo over a certain time period
transaction
discretionary
budget
cash flow statement
14
Doing a budget does not:
D) Make your money go further
A) Show if you are overspending in an area
C) Remove guilt/shame sometimes associated with a purchase
B) Make overspending more likely
15
Which of the following is a consequence of overdrawing your checking account?
A) Bounced check fee from the store
C) Overdraft fee from your bank
D) All of the above
B) Stress from money mismanagement
16
Your own record of all your transactions
check register
before you wreck yo self
check in to cash
check yo self
17
Expenses that remain the same from month to month
fixed
variable
discretionary
intermittent
18
ʺPay yourself firstʺ means to assign a portion of your income to saving/investing every month.
False
True
19
Percentage of Americans living paycheck to paycheck:
B) 25
A) 70
C) 50
D) 40
20
Groceries are a:
B) Variable expense
A) Fixed expense
D) Intermittent expense
C) Discretionary expense
21
To match your bank statement with your checkbook
budget
carbon check
cash flow plan
reconcile
22
The zero-based budget is the best method of budgeting because:
A) It is less complicated
C) Sticking to a zero-based budget requires less discipline
D) It ensures that every dollar you make has a purpose
B) A zero-based budget allows less money for wants
23
Occurs when money is withdrawn from a bank account and the available balance goes below zero
zero-based
Overdraft
carbon copy
Reconcile
24
Which of the following is something that a typical millionaire would do?
A) Lease a new car
D) Carry debt
C) Replace things that are not broken
B) Spend less money than he or she makes
25
Dining out is a:
B) Variable expense
A) Fixed expense
D) Intermittent expense
C) Discretionary expense
26
Which of the following account records would have the most current balance?
D) All of these records will have accurate account balances
C) Your monthly bank statement
B) Your own account register
A) Account balance statement from the ATM
27
Which of the following statements is false?
C) A budget has what has already occured
A) A cash flow statement has all income spending over time
D) A cash flow statement is has what has already occured
B) A budget is a written plan for saving and spending.
28
An item that is bought without previous planning or consideration of the long-term effects
reconcile
impulse purchase
envelope system
sale item
29
Writing and following a zero-based budget will help you avoid overspending/ impulse purchases
True
False
30
Having more than one bank account is never a good idea since it can complicate money management
True
False
31
Car repairs are a:
A) Fixed expense
D) Intermittent expense
C) Discretionary expense
B) Variable expense
32
Automatic account transfers are the easiest way to save for emergency fund/large purchases.
True
False
33
Rent is a:
B) Variable expense
D) Intermittent expense
A) Fixed expense
C) Discretionary expense
34
The envelope system works great for managing spending on things that are variable expenses
False
True
35
Which of the following is not a record-keeping feature you could expect from your bank?
C) Customer service reconciles your account for you
A) A reconciliation sheet
D) A monthly account statement
B) An account register
