Foundations in Personal Finance - Budgeting

Question 1

An item that is bought without previous planning or consideration of the long-term effects

Accepted Answer

Impulse purchase

Question 2

Having auto transfers is a simple way to build your savings for an emergency fund/big purchase.

Accepted Answer

True

Question 3

Having more than one bank account is not a good idea since it can complicate money management.

Accepted Answer

False

Question 4

Envelopes that are split into categories and used to store cash for planned monthly expenses.

Accepted Answer

Envelope System

Question 5

Doing a budget does not:

Accepted Answer

Make overspending more likely

Question 6

A debit card cannot be used for online purchases.

Accepted Answer

False

Question 7

A written cash flow plan

Accepted Answer

Budget

Question 8

Which of the following is something that a typical millionaire would do?

Accepted Answer

Spend less money than he or she makes

Question 9

Budgeting is crucial to your financial success.

Accepted Answer

True

Question 10

The percentage of Americans living paycheck to paycheck is:

Accepted Answer

70

Question 11

Which of the following statements is false?

Accepted Answer

Budgets sum up saving/spending that happens in the past year

Question 12

A written budget, if followed, removes _____ from your finances.

Accepted Answer

All of the above

Question 13

Your own record of all your transactions

Accepted Answer

Check register

Question 14

Writing & following a zero-based budget will help you avoid overspending and impulse purchases.

Accepted Answer

True

Question 15

Eating out is a:

Accepted Answer

Discretionary expense

Question 16

Which of the following is not a record-keeping feature your could expect from your bank?

Accepted Answer

Customer service reconciles your account for you

Question 17

Which of the following is a consequence of overdrawing your checking account?

Accepted Answer

All of the above

Question 18

Car repairs are a:

Accepted Answer

Intermittent expense

Question 19

The following are guidelines for budgeting with an irregular income except:

Accepted Answer

Using an irregular income is the same as using a regular one

Question 20

To match your bank statement with your checkbook

Accepted Answer

Reconcile

Question 21

"Pay yourself first" means assigning a portion of your income to saving and investing monthly.

Accepted Answer

True

Question 22

Rent is a:

Accepted Answer

Fixed expense

Question 23

Groceries are a:

Accepted Answer

Variable expense

Question 24

Non-essential expenses

Accepted Answer

Discretionary

Question 25

Envelope systems work for managing spending on things that don't have a fixed monthly expense.

Accepted Answer

True

Question 26

Expenses that remain the same from month to month

Accepted Answer

Fixed

Question 27

A summary of all the income and outgo over a certain time period

Accepted Answer

Cash flow statement

Question 28

The #1 cause of divorce in North America today is stress and disagreements over money.

Accepted Answer

True

Question 29

Occurs when money is withdrawn from a bank account and the available balance goes below zero

Accepted Answer

Overdraft

Question 30

Online bill pay lets you make payments to who you want w/out writing a check and mailing it.

Accepted Answer

True

Question 31

If you write a zero-based budget every month, it is not necessary to reconcile your account.

Accepted Answer

False

Question 32

The zero-based budget is the best method of budgeting because:

Accepted Answer

A zero-based budget gives every dollar an assigned a purpose

Question 33

A cash flow plan that assigns an expense to every dollar of your income. Income-Expenses=0.

Accepted Answer

Zero-based budget

Question 34

Your monthly budget should include:

Accepted Answer

All of the above

Question 35

Which of the following account records would have the most current balance?

Accepted Answer

Your own account register

Foundations in Personal Finance - Budgeting

Questions 35

Foundations in Personal Finance - Budgeting

Questions 35