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Ch 3 BUDGET -Financial Literacy Flashcards | StudBud
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Ch 3 BUDGET -Financial Literacy
Ch 3 BUDGET -Financial Literacy
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Answers
1
Non-essential expenses.
INTERMITTANT
DISCRETIONARY
2
Percentage of Americans living paycheck to paycheck
50%
25%
70%
40%
3
The envelope system works great for managing spending on things that don’t normally have a fixed monthly expense.
False
True
4
Your own record of all you transactions:
Account Statement
Check Register
5
Rent is a:
Discretionary Expense
Intermittent expense
Fixed expense
Variable Expense
6
Which of the following is something that a typical millionaire would do?
Lease a new car
carry debt
Replace things that are not broken
Spend less than they make
7
Setting up automatic account transfers is the easiest way to build your savings for your emergency fund or large purchas
False
True
8
Having more than one bank account is never a good idea since it can complicate money management.
True
False
9
A written budget, if followed, removes _________ from your finances.
Management by crisis
All of the Above
Guilt
Overspending
10
Doing a budget does not:
Make overspending more likely
Remove guilt and shame sometimes associated with a purchase
Make your money go further
Show if you are overspending in an area
11
A summary of all the income and outgo over a certain time period.
Cash Flow Statement
Budget
12
Expenses that remain the same from month to month.
VARIABLE
FIXED
13
Which of the following is a consequence of overdrawing your checking account?
Overdraft Fee from your bank
Stress from money mismanagement
All of the above
Bounced check fee
14
Eating out is a:
Fixed Expense
Discretionary Expense
Intermittent Expense
Variable Expense
15
Writing and following a zero-based budget will help you avoid overspending and impulse purchases.
False
True
16
Online bill pay allows you to make payments to whomever you wish without having to write a check and send it in the mail
False
True
17
A debit card cannot be used for online purchases.
False
True
18
A written cash flow plan
Personal Finance
Budget
19
Budgeting is crucial to your financial success.
False
True
20
.An item that is bought without previous planning or consideration of the long-term effects.
Sale Item
Impulse Purchase
21
Car repairs are a:
Discretionary Expense
Fixed Expense
Variable Expense
Intermittent Expense
22
Which of the following account records would have the most current balance?
All of these records will have accurate account balances
Account balance statement from the ATM
Your monthly bank statement
Your own account register
23
Occurs when money is withdrawn from a bank account and the available balance goes below zero.
Reconcile
Overdraft
24
Your monthly budget should include:
Fixed Expenses
Variable Expenses
Discretionary Expenses
All of the Above
25
Series of envelopes that are divided into categories and are used to store cash for planned monthly expenses.
Envelope System
Check carbon
26
If you write a zero-based budget every month, it is not necessary to reconcile your account.
False
True
27
The number-one cause of divorce in North America today is stress and disagreements over money.
False
True
28
The zero-based budget is the best method of budgeting because:
Zerobased budget ensures every $ you make is assigned a specific purpose.
Sticking to a zero-based budget requires less discipline
This type of budget is less complicated than other types of budgets
A zero-based budget allows less money for wants
29
Groceries are a:
Intermittent Expense
Fixed Expense
Discretionary Expense
Variable Expense
30
The following are guidelines for budgeting with an irregular income except:
When your check comes in, spend your money all the way down the list.
Budgeting with an irregular income is no different than with a regular inc
Make a list of all of your expenses for the month ahead.
Prioritize the list in order of importance
31
Which of the following is not a record-keeping feature you could expect from your bank?
Customer service reconciles your account for you
An account register
A reconciliation sheet
A monthly account statement
32
ʺPay yourself firstʺ means you should assign a portion of your income to saving and investing every month.
False
True
33
A cash flow plan that assigns an expense to every $ of your income, wherein the income minus the total expenses = 0.
Zero-spending Plan
Zero-based budget
34
To match your bank statement with your checkbook.
Cash Flow Plan
Reconcile
35
Which of the following statements is false?
A budget is a written plan for saving and spending.
A cash flow statement summarizes all of the income and exp over pd of time
The cash flow statement is reflective of what has already taken place.
A budget is meant to summarize the saving and spending that has taken place
