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