Creating a Family Budget - CC: Creating a Family Budget - Final Assessment

The Zegen's want to save for a down payment on a house. The monthly income is $6,000. Their fixed expenses are $3,000 and they plan to keep their flexible expenses to $2,000 a month. Everything remaining will be set aside for their down payment. How much will they be putting aside each month for their new house?

$1,000

Carl and Carla are buying a new house. They know the house will cost $150,000 and the closing costs will be 4 percent of the home's purchasing price. How much will they have to save for the closing costs and recommended down payment?

$36,000

Marge and Liam want to live by the 50/30/20 rule. They bring home $40,000 annually. How much should they be saving every year according to this rule?

$8,000

Place the suggested steps for planning ahead for a financial life events in correct order.

1. Save $1,000 only for emergencies or unexpected circumstances 2. Pay off consumer debt 3. Save three to six months of income to set aside for emergencies or unexpected circumstances 4. Save for expected expenses

Geoff has a goal to save $3,000,000 in five years so he and his wife can retire at 30 like his favorite financial social media influencer. They will save half of their income monthly, both currently makes $25,000 a year. Select all of the following SMART goal-setting principles this goal does NOT meet.

Attainable and realistic

Using the word bank below place the examples of expenses with the correct expense type.

Fixed expenses - car payment, car insurance, rent, water bill Flexible expenses - groceries, laundry/dry cleaning, food delivery, clothing subscription box

Which of the following is NOT a suggested strategy for handling decreases in income?

Moving to a larger apartment with more free amenities

Using the statement bank below, match the feature with the correct type of car.

New - have lower interest rates on loans, may be covered by manufacture's warranties, depreciate rapidly Used - have cheaper insurance and registration rates, will not have mechanical issues until at least 100,000 miles, can carry a certain amount of risk if previous owner was not diligent about car maintenance

The Cumberland family wants to move into a larger apartment. The apartment costs $1,500 a month. They currently earn take-home pay of $4,000. Evaluate their budget. Can they afford the larger apartment on the current budget?

No

The Welch family has a goal to save to adopt a baby. They want to save $5,000 for adoption fees and other baby expenses by saving a portion of their income every month. Select all of the following suggestions which would best help the Welch's improve their goal to meet SMART goal-setting standards.

Specifying how much of their income they will set aside each month and determining how long this goal should take to achieve