personal finance chapter 3-4 managing your money/budgeting

Your budget should reflect the three

R's: reality, responsibility, and restraint

A good way to manage your money to reflect your values is to use the

Share Save Spend system.

If your net income is $530.00 per week, and you want to put 50 percent of your earnings into your checking account, 25 percent into your savings account, and 25 percent into your sharing account, what are the total dollar amounts you would have in each account after four weeks?

$1060.00 in checking, $530.00 in savings, and $530.00 in sharing

If your monthly income from your job is $600, and you want to save 25%, how much would you save each month?

$150

If Mateo wants to share 5% of his monthly income of $500, how much would he share in dollars?

$25

If your net income is $110.00 per week, and you want to put 50 percent of your earnings into your checking account, 25 percent into your savings account, and 25 percent into your sharing account, what are the dollar amounts you would put into each account?

$55.00 in checking, $27.50 in savings, and $27.50 in sharing

You must file an income tax return for your annual earnings by _________ of the following year.

April 15

Which of the following is not a step in setting up a financial plan?

Create a complex record-keeping system that reflects your goals.

If you are single and do not itemize deductions, you will probably want to file which tax form at the end of the year?

Form 1040EZ

Which of the following is a benefit of using computer-based money management systems?

You can manage all your accounts in one software program.

If you have fulfilled your short-term goal of purchasing a new air conditioner for your parents by saving $45 every month, you might want to ___________your financial plan by putting the $45 into your sharing account to donate to your church and the local animal shelter.

adjust

Being a philanthropist requires which of the following?

altruism

the situation when expenses exceed income

budget deficit

the situation when income exceeds expenses

budget surplus

What is the best way to budget your income if you work a different number of hours each week?

by averaging income over several months

income and expenses

cash flow

a document you refer to when first setting up your budge

cash flow statement

What is service-learning?

combining community service with your studies

How can you make sure your budget is on track after you set it up?

compare your budgeted income and expenses with your actual income and expenses for two weeks

Which of the following is not a quality of a good budget?

deficit based

Most people who contribute their time, money, and talents start _______ in life

early

Which of the following describes an effective filing system?

easy to use. logical, easy to access

You can prepare for unexpected expenses by regularly putting money into a(n)

emergency fund

money set aside for repairing or replacing items that break down

emergency fund

educated guess based on information you have

estimate

A complicated budget is more likely to motivate you to achieve your financial goals.

false

As you create your financial plan, take into account your irregular forms of income.

false

Consolidating debts into a larger payment can help when you need to modify your fixed expenses.

false

Include expected or estimated income and known or estimated expenses when creating an ongoing goal chart.

false

People who cannot afford to put aside very much money for savings goals often contribute time and energy as well.

false

People who have worked at some time in their lives may collect retirement benefits from the federal government's incometax program.

false

Planning a cross-country camping trip with friends is an example of a medium-term goal.

false

When banking online, you will have to enter your username and Social Security number at the login page.

false

When planning to buy a car, it's wise to try to save the money quickly, creating small benchmarks.

false

When you are setting up your budget, include the money you earned selling your dog's litter of puppies.

false

You can use a spending log to figure out how much you spend in various categories.

false

Your bank will occasionally send you e-mail requests to update your personal and financial information.

false

What is the first thing to consider when planning a budget?

financial goal

Bank statements, receipts, insurance policies, invoices, paycheck stubs, and spreadsheets are part of your ___________

financial records

a cellphone bill

fixed expense

a list of what you expect to achieve and how you will achieve it

goal chart

Which of the following events would not require reworking a budget?

having a budget surplus

Which of the following items should always be included in a cash flow statement?

income from wages, savings, fixed expenses

When setting your financial goals, make sure they are specific, _________ and realistic

measurable

Janie earns $12.00 an hour and works 34 hours a week for 10 weeks during the summer. She earns $8.00 an hour and works 10 hours a week for 36 weeks during the school year. What figure should she use to determine her income for her budget?

monthly school year income

Fixed expenses include all of the following except

new tires

Which of the following most accurately describes a budget deficit?

not having enough money to cover expenses

Short-term goals are goals you hope to achieve in how many years?

one to five years

a retirement fund

open-ended goal

If you have $113.69 in your checking account, and you spend $115.44, you will be charged a(n)

overdraft fee

If you get a substantial pay raise, you might pay a higher _________ of your earnings in income tax.

percentage

Which of the following is a type of sharing?

philanthropy, altruism, charitable giving

_____________ your goals is a way of determining which ones you should focus on immediately.

prioritizing

Which of the following is not an example of sharing?

putting aside money for a trip with your friends to see an art exhibit honoring people with AIDS

If Shauna finds a budget deficit two weeks after creating her budget, which of the following is the best way for her to eliminate the deficit?

review expenses and cut back

___________ is a way you can put your values into action by donating to a cause you believe in.

sharing

Which of the following should be included in a goal-planning worksheet?

sharing, spending, and savings goals

Which tax must be paid by everyone who works?

social security tax

Teens might be better able to give __________ rather than money to causes in which they believe

time

One of the benefits of volunteering is that you can put the experience on your résumé.

true

Saving to replace your printer will mean considering the time and money required to reach your goal.

true

The first step in meeting your financial goals is to identify them.

true

Trying to save money to buy a house while you are working only 10 hours a week would not be practical.

true

You can ask people you trust about how their values influenced their financial decisions.

true

You will need to use your Form W-2 to file your income tax return.

true

Your taxable income is based on your gross pay minus deductions.

true

linking goals to values helps motivate people to achieve their goals

true

what is most important to you

values

Purchasing a reliable car to get to work fulfills a need; purchasing a convertible fulfills a(n) ___________

want

Form W-2 reflects the total amount your employer has

withheld from your gross pay in taxes and sent to the government.