personal finance chapter 2

What's your biggest wealth-building tool? A. Income B. Investments C. Savings account D. Inheritance

A

What is it called when you make money on the percentage of the total sales you make? A. Irregular income B. Commission C. Gross income D. Overtime

B

When you're creating your monthly budget, what's the first priority under "Expenses"? A. Saving B. Giving C. Spending D. Entertainment

B

If you approach money with a generous spirit, you'll be . . . A. Able to save B. Less content C. More grateful D. Free of stress

C

What will tracking expenses help you do? A. Stick to a budget B. Catch errors C. Make adjustments D. All of these

D

Which of the following is not a type of discretionary expense? A. Fixed B. Intermittent C. Variable D. Depreciation

D

Specific categories are important to consider when creating a budget so you can ____

break down your income and spending

A(n) _____ needs to be evaluated in light of your other expenses for the month.

discretionary expense

A(n) _____ stays the same from month to month.

fixed expense

A budget doesn't tell you not to spend. A budget actually ___

gives you permission to spend

The three priorities in your budget, after listing income, are ___

giving, spending, saving

The envelope system is especially helpful for expenses like ___

groceries, restaurants, entertainments,...

To budget with a(n) _____ , prioritize expenses from most to least important so your most important expenses are covered first.

irregular income

Taxes and withholdings impact your _____ , which is the amount of money you take home on your paycheck.

net income

The cost of groceries and gas is considered a(n) ____

variable experience

A(n) ______ should account for fixed, variable, intermittent, and discretionary expenses based on income.

zero-based budget