True or false
Fill in the blank
Terms
Budgeting
100

A budget is a plan you write down to decide how you’ll spend your money each month

True.

100

_______ is money that is earned or received through work or investments on a regular basis

Income

100

What is the procedure of Zero-Based Budgeting?

Every dollar of your income is assigned a specific purpose, so that income – expenses = $0 by the end of the month.

100
Will a budget give you more money?
No
200

Your budget will stay the same for a lifetime

False

200
An example of a fixed expense is:_____ 1.clothing. 2.auto insurance. 3.an electric bill. 4.educational expenses.
2. auto insurance
200
What is the definition of budgeting?
An estimate of income and expense.
200

A clearly written financial goal would be: 1.To save money for college for the next five years 2.To invest in an international mutual fund for retirement 3.To establish an emergency fund of $4,000 in 18 months 4.To pay off credit card bills this year

3.To establish an emergency fund of $4,000 in 18 months

300
The budgeting process starts with monitoring current spending.
True
300

A ______ can help monitor your spending

budget tracker

300

Used as a record to monitor spending and saving

Budget tracker

300
An example of a long-term goal would be: 1.an annual vacation. 2.saving for retirement 3.buying a used car. 4.completing college within the next six months.
2.saving for retirement
400
Rent is considered a fixed expense.
True
400

_____ are important things that help you live your life and are individual to the person.

Needs

400

Formula that can help you determine how to budget and save your money

50/30/20 Rule

400
What is commonly considered a flexible expense? 1.rent 2.a mortgage payment 3.home insurance 4.entertainment
4.entertainment
500
Flexible expenses stay about the same each month.
False
500

____ are expenses that can be cut out of your budget to save money.

Wants

500
Used to help offset unexpected costs/emergencies, for rewards, and/or to meet a goal.
Rainy day fund
500
The final phase of the budgeting process is to: 1.set personal and financial goals. 2.compare your budget to what you have actually spent. 3.review financial progress. 4.monitor current spending patterns.
3.review financial progress.
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