What should you do if you consistently overspend in a particular budget category?

Reduce spending in other categories to make up for it.

With a "rainy day" savings fund, you:

Set aside money for emergencies in case of a loss of income.

The best way to start the budgeting process is to:

Start tracking all of the money you spend for a period of time.

What is a "certificate of deposit (CD)"?

A fixed-term savings account with a higher interest rate.

What is the difference between a fixed expense and a variable expense?

Fixed expenses remain the same each month, while variable expenses can vary

How does tracking expenses and income regularly contribute to effective budget management?

It helps identify spending patterns, and make informed financial decisions.

What is the "envelope system" for budgeting?

Where you use envelopes to store money for different spending categories.

Zero-based budgeting begins with _________.

Allocating your money into different categories until you have "none"

What is a primary benefit to budgeting apps

Simplify the budgeting process, offer insights, and track expenses easily.

Which of these should be included in your monthly budget? (Pick two options)

Fixed expenses, Variable expenses

A plan made in advance regarding the spending of money based on income.

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Budget systems/savings quiz

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Questions 15

Answers

1
What should you do if you consistently overspend in a particular budget category?
Reduce spending in other categories to make up for it.
Increase your budget in that category.
Ignore it and hope it gets better.
Keep overspending; it's not a big deal.
2
Which of the following is an example of fixed expense?
charitable contributions
mortgage or rent payments
Food and grocerie
Gas for your car
3
With a "rainy day" savings fund, you:
Money to use to treat yourself when the weather is bad.
Set aside money for emergencies in case of a loss of income.
Save up money to buy an umbrella and other types of rain gear
Put a fixed amount of money into a savings account each time it rains.
4
The best way to start the budgeting process is to:
Automatically deposit money into a savings account with each paycheck.
Pay your credit card balance(s) in full each month.
Curbing your spending on incidental items such as dining out etc.
Start tracking all of the money you spend for a period of time.
5
What is a "certificate of deposit (CD)"?
A credit card with a high limit.
A fixed-term savings account with a higher interest rate.
A type of high-risk investment.
A document indicating your financial status.
6
What is the difference between a fixed expense and a variable expense?
Fixed expenses remain the same each month, while variable expenses can vary
Fixed expenses are paid annually, while variable expenses are paid monthly.
Fixed expenses change from month to month, variable expenses stay constant.
There is no difference; they mean the same thing.
7
How does tracking expenses and income regularly contribute to effective budget management?
It doesn't contribute to effective budget management.
It helps identify spending patterns, and make informed financial decisions.
It leads to overspending.
8
What is the suggested lowest amount you should budget for savings? (ALL budget systems, not just in 50-30-20)
10%
35%
$150 per pay check/period
20%
9
What is the "envelope system" for budgeting?
A system where you put envelopes in a drawer and forget about them.
Where you use envelopes to store money for different spending categories.
A system that involves tracking expenses electronically.
A system that doesn't require any organization.
10
Zero-based budgeting begins with _________.
Base your budget based on the amount of 0's in your bank account
Where you don't justify any expenses at all.
Allocating your money into different categories until you have "none"
Is the system where you do not budget at all
11
What is a primary benefit to budgeting apps
They automatically budget for you every month
They automatically generate savings.
They make the process more complicated
Simplify the budgeting process, offer insights, and track expenses easily.
12
Which of these should be included in your monthly budget? (Pick two options)
Fixed expenses
Necessary expenses
Discretionary expenses
Variable expenses
13
What is budgeting?
Having money left over at the end of the month.
The ability to pay your bills on time.
A plan made in advance regarding the spending of money based on income.
Having enough money to go out to eat.
14
Which IS NOT a step you should take when creating a budget?
Determine monthly/annual income
Not splitting needs and wants
Decide a preferred budget system
Categorize expenses (Bills, groceries ETC.)
15
Subscriptions and memberships are variable expenses that can be considered fixed when the price is changed.
True
False

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