PF- 3 Overview of a Budget, Spending, & Money Management Tools- 10/10/17(Tue.)- Q #1- Budget

PF- 3 Sec. 1: All the following are benefits of having a budget except _____.

- knowing how much you owe in taxes - reducing stress - being a better steward of God's resources - avoiding financial problems - making your money grow - knowing what you can afford answer: - knowing how much you owe in taxes

PF- 3 Sec. 1: Choose all that apply. Select all the parts of a financial plan.

- net worth statement - savings account - financial goals - savings and investing plan - insurance plan - checkbook register - budget answer: - net worth statement - financial goals - budget - savings and investing plan - insurance plan

PF- 3 Q 1: Choose all that apply. Online banking tools allow you to _____.

- pay bills from your computer - transfer money from one account to another - view checking account transactions - look for bargains answer: - pay bills from your computer - transfer money from one account to another - view checking account transactions

PF- 3 Sec. 3: Randy has a hard time remembering to pay his bills on time. Which feature would you recommend for Randy?

- printable graphs - calendar - automatic notices when your checking account is - getting low - ability to calculate totals answer: - calendar

PF- 3 Q 1: Randy would like to set up a budget for a vacation he is taking next year. Which money management tool should Randy use?

- printable graphs - spreadsheet - online banking - Expensure answer: - spreadsheet

PF- 3 Sec. 2: Spending wisely _____. - takes a lot of time - makes you a better steward of God's resources - increases stress - means using a credit card for most of your purchases

answer: - makes you a better steward of God's resources

PF- 3 Sec. 3: A _____________ is software that contains rows and columns used to make calculations, organize information, and make comparisons.

answer: spreadsheet

covetousness

desire for the wealth or possessions of others

spreadsheet

software that contains rows and columns used to make calculations, organize information, and make comparisons

PF- 3 Sec. 1: A budget is a _____.

- net worth statement - plan for saving and spending your money - table that lists your goals for saving and investing - list of what you spent last month answer: - plan for saving and spending your money

PF- 3 Q 1: A net worth statement, financial goals, and a budget are all part of a _____.

- saving and investing plan - savings account - long-term financial goal - financial plan answer: - financial plan

PF- 3 Sec. 2: Describe how you can spend wisely or improve your spending habits.

Writer: Some ways to spend money wisely are avoiding impulse purchases, think about what's most important, track your spending, and be content with what you have.

variable expenses

costs that change in amount

impulse purchases

purchases that are not planned

PF- 3 Q 1: Ashley went to the mall and bought a new pair of jeans that caught her eye. This caused her to go over her credit card limit and now she owes a fee. What tip could have helped Ashley?

- Avoid impulse purchases. - Buy quality products. - Claim exemptions on your tax forms. - Look for bargains. answer: - Buy quality products.

PF- 3 Q 1: Who did not spend wisely?

- Erika looks for bargains online before she goes shopping. - Mia makes a list before she heads to the grocery store. - Erin makes a purchase online using a credit card. She knows that she can pay the entire bill when it arrives. - Lauren buys a cheap pair of headphones. They break, and she needs to buy a new pair. answer: - Lauren buys a cheap pair of headphones. They break, and she needs to buy a new pair.

PF- 3 Sec. 3: Choose all that apply. Taylor wants to create a budget to track her expenses and identify ways she can reduce spending. What tools could she use?

- Quicken - bill pay - spreadsheet - Mint - Budget Tracker answer: - Quicken - spreadsheet - Mint - Budget Tracker

PF- 3 Sec. 1: Net worth is the amount you have, plus the amount you owe.

- True - False answer: - False - ...'minus' the amount you owe.

PF- 3 Q 1: The purpose of a budget is to track your income and your spending.

- True - False answer: - True

PF- 3 Sec. 2: Overspending can keep you from achieving your goals.

- True - False answer: - True

PF- 3 Sec. 3: Online banking tools allow you to pay bills from your computer.

- True - False answer: - True

PF- 3 Q 1: Taylor wants to generate a graph to show how she is doing at saving. What tool should she use?

- bill pay - budget software - online banking - graphic software answer: - graphic software

PF- 3 Sec. 1: A variable expense is a _____.

- cost that stays the same from month to month - cost for completing a budget - cost listed in a budget - cost that changes answer: - cost that changes

PF- 3 Q 1: A fixed expense is a _____.

- cost that stays the same from month to month - cost for completing a budget - cost listed in a budget - cost that changes answer: - cost that stays the same from month to month

PF- 3 Sec. 3: Spreadsheet software can be used to do all the following except _____.

- create a budget - calculate your net worth - open a savings account - create a graph answer: - create a graph

PF- 3 Q 1: Spreadsheet software can be used to _____.

- create a budget - send your net worth to a loan officer - apply for a car loan - create a graphic answer: - create a budget

PF- 3 Q 1: Jeff cannot find any of his receipts for entering into his budget. In addition, he cannot find any of his bank statements. Jeff should _____.

- go back to each store to collect the receipts - get organized by purchasing some file folders and filing his paperwork - spend less money so he doesn't have so many receipts - pay for everything on a credit card so he can track his spending from his credit card statement answer: - pay for everything on a credit card so he can track his spending from his credit card statement

PF- 3 Q 1: In order to create a budget, you should _____.

- list your income and your assets and find the total - list your expenses and calculate the total - add all of your income and expenses and subtract the taxes - list and total your income, list and total your expenses, and subtract your expenses from your income answer: - list and total your income, list and total your expenses, and subtract your expenses from your income

PF- 3 Q 1: Tips for spending wisely include the following except for _____.

- using credit cards infrequently - tracking your spending - borrowing money from reliable friends - avoiding impulse purchases answer: - borrowing money from reliable friends

PF- 3 Sec. 3: In two or three sentences, describe how you would use some of these tools to help manage your money.

Writer: I would organize data you need in order to prepare taxes. Calculate the amount of your mortgage payments or car payments.

PF- 3 Q 1: In one or two sentences, describe why it's important to spend wisely.

Writer: It's important to spend wisely because you have to be careful on how much you spend from your receipt. If you wanted to give something back from a store; you have to hold on to your receipt in order to get your money back - otherwise, you wouldn't be able to prove that you paid it before you hand back the item. Therefore, you should spend less time of money and should spend it on things that are more important.

PF- 3 Q 1: In one or two sentences, describe the benefits of having a budget.

Writer: Spreadsheet can create budget. Some of the things that you can track your expenses and identitify ways to reduce spending are Quicken, Mint, and Budget Tracker.

PF- 3 Sec. 1: In two to three sentences, describe how you would organize your financial information.

Writer: There are five parts to a organize your financial information. They are: net worth statement, financial goals, budget, saving and investing plan, and insurance plan. Another way to organize your financial information are bills, receipts, and account statements.

budget

a plan for how you will spend and save your money

PF- 3 Sec. 2: Who is not spending wisely? - Erika goes shopping and saves her receipts. She totals how much she spent and writes it down. - Mia needs to buy a new pair of shoes because she joined the soccer team. She looks at newspaper ads to find the best price. - Lauren has been thinking about getting a puppy for a long time. She walks by the pet store at the mall and decides to get a puppy. - Erin makes a purchase online using a credit card. She knows that she can pay the entire bill when it arrives.

answer: - Lauren has been thinking about getting a puppy for a long time. She walks by the pet store at the mall and decides to get a puppy.

PF- 3 Sec. 2: Choose all that apply. Tips for spending wisely include _____. - tracking your spending - avoiding impulse purchases - using credit cards infrequently - borrowing money from your friends - looking for bargains - avoiding buying gifts

answer: - avoid impulse purchases - looking for bargains - using credit cards infrequently - tracking your spending

fixed expenses

costs that remain the same amount

PF- 3 Q 1: A good financial plan does not really need to include an insurance plan.

- True - False answer: - False

PF- 3 Sec. 1: A saving and investing plan is part of a good financial plan.

- True - False answer: - True - The parts of a good financial plan include a net worth statement, financial goals, a budget, a saving and investing plan, and an insurance plan.

PF- 3 Sec. 2: Ashley bought an expensive pair of jeans. Her friend got the same pair of jeans for almost $20 less. What tip could have helped Ashley?

- Use credit cards infrequently. - Buy quality products. - Think about what is most important. - Look for bargains. answer: - Think about what is most important.