Personal Finance

Your money personality can affect your ____. A. Attitude toward budgeting B. Choice of a bank C. Personal values D. Ability to budget

A. Attitude toward budgeting

How often should you create a budget? A. Daily B. Weekly C. Monthly D. Biannually

C. Monthly

What should you do if you overspend in one category of your budget? A. Adjust your budget by removing money from other spending categories B. Just leave it. It will probably work out fine. C. Take money from the Giving category. You're giving to yourself! D. Ask a friend for the money you overspent.

A. Adjust your budget by removing money from other spending categories

Which of the following is NOT a component of a budget? A. Credit score B. Saving C. Income D. Giving

A. Credit Score

What is a way to stay accountable to reaching your financial goals? A. Finding a person you trusted to help keep you on track with your money goals B. Hiring a financial advisor to make your decisions about money for you C. Looking at the budget you set at the end of the month D. Creating specific categories in your budget

A. Finding a person you trusted to help keep you on track with your money goals

The first priority in your budget should be _____. A. Giving B. Spending C. Saving D. Investing

A. Giving

What is the envelope system? A. It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash. B. It's a systematic approach to budgeting with a digital app that organizes categories based on qualitative amounts. C. It's a way to budget that involves putting a credit card in each envelope to use for that category. D. It's a system that involves writing your entire budget on an envelope.

A. It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash.

When is the right time to start creating and living by a budget? A. Right now-it's never too early! B. When you start researching colleges and the costs that come along with it C. Once you have a job with an income D. When you decide it's time to buy a car

A. Right now-it's never too early!

Commission is when you make money based on the percentage of ______. A. Total sales B. Investments C. Budgets D. Items sold

A. Total sales

What kind of money counts as income? A. Only the money you make at your job B. All money that you receive, including money from your job and gifts like birthday money C. Money in your savings account D. Only money deposited into your bank account

B. All money that you receive, including money from your job and gifts like birthday money

Going to the movies is an example of what types of expenses? A. Intermittent and variable B. Discretionary and variable C. Discretionary and fixed D. Intermittent and fixed

B. Discretionary and variable

What does a budget show you? A. How much you need to save B. How much money you plan to come in and go out during the month C. How much money you need to earn D. How much money you spent last month

B. How much money you plan to come in and go out during the month

Why is tracking your expenses throughout the month important? A. It allows you to delete categories you don't like. B. It gives you insight into whether you're sticking to the budget you set. C. It helps you pull money from your savings to spend in other categories. D. It really isn't that important in the long run.

B. It gives you insight into whether you're sticking to the budget you set.

How many categories should you have in your budget? A. 15 or more B. No limit; use as many as you need to keep your budget accurate! C. No more than 10, at least 3

B. No limit; use as many as you need to keep your budget accurate!

What is a good way to make sure you're creating a budget that's realistic? A. Make sure you create a budget every single day. B. Make sure your budget is perfect before starting. If it isn't just right, don't use it. C. Check your calendar so you can plan for upcoming monthly expenses. D. Make sure you have enough money in your savings account to pull from if you overspend.

C. Check your calendar so you can plan for upcoming monthly expenses.

Why is budgeting so important? A. It's a good way to make sure all your money is spent by the end of the month. B. It helps you figure out the best way to justify purchases that maybe aren't necessary. C. It gives you control of your money and sets you up for financial success in the future. D. It helps you brush up on your math skills.

C. It gives you control of your money and sets you up for financial success in the future.

The best way to budget is.... A. By using a digital app B. Creating a spreadsheet C. The way that works best for you D. On Paper

C. The way that works best for you

Although the majority of Americans think budgeting is important, about ______ of Americans actually use a budget. A. 75% B. 50% C. 23% D. 35%

D. 35%

What are the four Walls? A. Utilities, college fund, restaurants, and car insurance B. Cell phone bill, car insurance, shelter, and money for the movies C. Food, utilities, transportation, and college fund D. Food, utilities, shelter and transportation

D. Food utilities, shelter, and transportation

A common misconception is that budgeting will keep you from having fun, when in reality a budget... A. Adds more stress to your life B. Means there are no rules - you are free to use your money however you want C. Restricts your fun completely D. Gives you permission to spend

D. Gives you permission to spend

Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of _____ they have. A. Money B. Debit cards C. Personal values D. Personal debt

D. Personal debt

True or False If you get married, only one person is responsible for budgeting.

False

True or False If you have an irregular income, budgeting won't work for you.

False

True or False Net income is the amount you get paid before taxes.

False

True or False Online budgeting apps are more effective than budgeting with pen and paper.

False

True or False Your monthly rent payment is an example of a variable expense.

False

How many months does it usually take for your budget to start working as a budget should? A. Three B. Five C. Four D. One

Three

True or False Detailed categories on your budget will help you make better spending decisions.

True

True or False The primary reason people don't budget is because they lack the behavior to stick to a budget.

True

True or False A budget says what will happen with your money, while a cash-flow statement shows what already happened.

True