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Ch. 2 Budgeting (Dave Ramsey) Flashcards | StudBud
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Ch. 2 Budgeting (Dave Ramsey)
Ch. 2 Budgeting (Dave Ramsey)
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Dave Ramsey Chapter 2
Flashcards
42 cards
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Practice quiz
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Questions
42
Answers
1
Your monthly budget should include:
Discretionary expenses
Fixed expenses
Variable expenses
All of these
2
The primary reason people don't budget is because they lack the behavior to stick to a budget.
True
False
3
If you write a zero-based budget every month, it is not necessary to monitor your budget ever.
True
False
4
Budgeting is crucial to your financial success
False
True
5
What will tracking your expenses help you do?
make adjustments
all of these
stick to a budget
catch errors
6
Having more than one bank account is NEVER a good idea since it can complicate money management
True
False
7
Doing a budget does not:
Make your money go further
Remove guilt and shame associated with purchases
Make overspending more likely
Show if you are overspending in an area
8
What is your biggest wealth-building tool?
investments
income
savings account
inheritance
9
How many categories should you have in your budget?
No limit, use as many as needed to keep your budget accurate!
no. more than 10
at least 3
15 or more
10
Online budgeting apps are more effective than budgeting with pen and paper.
False
True
11
Online bill pay allows you to make payments without having to write and mail a check
False
True
12
A summary that shows total income and spending for a given time period.
Bank statement
Budget
Cash Flow Statement
13
The zero-based budget is the best method of budgeting because:
It ensures that every dollar you make is assigned a purpose
Sticking to a zero-based budget requires less discipline
This type of budget is less complicated
A zero-based budget allows less money for wants
14
Why is budgeting so important?
It gives you control of your money and sets you up for financial success
It helps you figure out the best way to justify unnecessary purchases
It's a good way to make sure your money is spent by the end of the month
It helps you brush up on your math skills
15
Which is something that a typical millionaire would do?
Lease a new car
Carry debt
Spend less money that he or she makes
Replace things that are not broken
16
PYF means you should assign a portion of your income to saving and investing every month
True
False
17
Series of these are divided into categories & are to store cash for planned monthly expenses.
Envelope System
Bank accounts
Wallets
18
Employees working on commission must depend on which of the following in order to be paid?
store location
shortening store business hours
selling goods and/or services to customers
babsitting the employers children
19
Mrs. Miller said your first priority should be saving for that emergency fund!
False
True
20
Which of the following is NOT a component of a budget?
Incomer
Giving
Credit Score
Saving
21
The following are guidelines for budgeting with an irregular income except:
It is no different than with a regular income
Make a list of all of your expenses for the month ahead
Prioritize the list in order if importance
When your check comes in, spend your money down the list
22
Although the majority of Americans think budgeting is important, about of Americans actually use a budget.
50%
23%
75%
35%
23
A debit card cannot be used for online purchases
False
True
24
The number-one cause of divorce in North America today is stress and disagreements over money
True
False
25
Gross Pay is take-home pay!
False
True
26
Eating out is a
Variable expense
Fixed expense
Intermittent expense
Discretionary expense
27
Percentage of Americans living paycheck to paycheck
40
50
25
70
28
A budget says what will happen with your money, while a cash-flow statement shows what already happened.
False
True
29
Setting up automatic account transfers is the easiest way to build your savings
False
True
30
Groceries are a:
Intermittent expense
Fixed expense
Discretionary expense
Variable expense
31
A written budget, if followed, removes _________ from your finances
Guilt
Crisises
All of these
Overspending
32
Cash flow plan that assigns an expense to every $ of income, total income
-
total expenses
=
zero
Named budget
Budget
Zero-based budget
33
What are the four walls
Utilities, college fund, restaurants and car insurance
Food, utilities, transportation, and college fund
cell phone bill, car insurance, shelter and money for movies
Food, utilities, shelter, and transport
34
Rent or a mortgage is a:
Intermittent expense
Variable Expense
Fixed expense
Discretionary expense
35
How many months does it usually take for your budget to start working as a budget should?
4
5
1
3
36
A written cash flow plan
Cash flow statement
Budget
Envelope system
37
An item that is bought without previous planning or consideration of the long-term effects
Wants
Overdraft
Impulse purchase
38
A budget is the same for every household?
True
False
39
The envelope system works for managing spending on things that don't have fixed monthly expense
False
True
40
Net income is gross pay minus taxes, etc.
False
True
41
According to Dave Ramsey, what is your first priority?
Saving
Giving
Starbucks
Pay cash for everything
42
Car repairs are a:
Variable expense
Fixed expense
Discretionary expense
Intermittent expense
