Vocabulary
Money that is spent on goods, services, and bills are known as __________.
a. Expenditures
b. Short-term goal
c. Budget
d. Financial Institution
a. Expenditures
Needs are Survival essentials, such as ______, ______, _______, and _________.
a. Clothing, shoes, credit cards, savings account
b. Food, water, clothing, shelter
c. Debit cards, credit cards, checks, bank account
b. Food, water, clothing, shelter
Jason's monthly income is $3,250. His monthly expenses are $2,738. Jason's discretionary income is ___________.
a. $80
b. $300
c. $450
d. $512
d. $512
Jason went to the grocery store to buy a gallon of milk for his mother. While waiting in the checkout line, he saw a display for a new chocolate-caramel candy bar, so he bought it, too. The candy bar purchase is an example of a/an:
a. special treat
b. impulse buy
c. need
d. payment for running an errand for his mom
b. impulse buy
Alison makes $7.25 an hour and works 20 hours a week. Her monthly expenses are $400. Does Alison have enough money to go on a trip that cost $195.
a. yes
b. no
b. no
___________ is making a purchase based on an immediate want or due to the pressure of advertising.
a. Spending habits
b. Saving money
c. Impulse Buying
d. Credit Unions
c. Impulse Buying
_________ are goods or services that make people more comfortable or content but which are not essential for survival.
a. needs
b. wants
c. income
b. wants
Kaniyah has a friend who's birthday is in two months. Kaniyah wants to buy her the shoes she always wanted. The shoes are $100. How much money should Kaniyah save each month in order to buy her friend's birthday gift?
$50
How much of your paycheck should be used to pay yourself first?
a. 10%
b. 20%
c. 30%
d. 40%
a. 10%
Name one type of insurance
Home (or rental): Designed to offer liability protection and property coverage for theft and fire.
Health: Pays for medical bills and prescriptions.
Auto: Offers protection for cars and drivers.
Dental: Pays for visits to a dentist and dental care.
Life: Pays a benefit to survivors in the case of death.
Travel: Refunds the cost of travel in the event of cancellation; may also cover medical expenses while traveling.
Phone: Replaces a lost or damaged phone.
Pet: Covers accident or illness care for pets.
Long-Term Goals are plans that take a ________ or more to accomplish.
a. Day
b. Week
c. Month
d. Year
d. Year
“Following a budget and living within your means are essential to keeping your finances _______.
a. healthy
b. in a credit union
c. in a bank
a. healthy
When you get your paycheck the first thing you should do is __________.
a. spend it all at once
b. buy a new cell phone
c. pay yourself first
d. give all of your friends $100
c. pay yourself first
An example of a budget category would be ______.
a. Credit cards
b. Housing
c. Scarcity
b. Housing
Protection against risk is the primary reason people purchase this type of policy.
a. Auto insurance
b. Health insurance
c. Home insurance
d. All of the above
d. All of the above
Short-Term Goals are plans that can be accomplished within three ________to a year.
a. Days
b. Weeks
c. Months
d. Year
c. Months
If Caleb makes $7.20 and hour and works 20 hours a week what would his gross monthly income be?
a. $560
b. $740
c. $608
d. $100
c. $608
In what category of a typical family budget do people spend most of their money?
a. food
b. housing
c. transportation
d. entertainment
b. housing
Name one tactic that stores use to encourage you to make impulse purchases.
Tactics stores use:
Store layout
Advertising
Pricing promotions
Product demonstrations
A contract that outlines coverage plans and protects a person against financial loss or damage is known as an:
Insurance Policy
The next best alternative given up when making a financial choice is known as _________________.
a. Scarcity
b. Budget Plan
C. Opportunity Cost
d. Savings
C. Opportunity Cost
Katie's rent is $1000, her phone bill is $100, her utilities are $170, and her student loan payment is $50. How much are Katie's regular monthly expenses?
a. $1,200
b. $1,320
c. $1,500
d. $2,000
b. $1,320
When budgeting, the first categories to consider are those that meet your:
a. wants
b. need
c. discretionary income
d. important expenses
b. needs
When creating a budget you should:
a. Determine your Net Monthly Income.
b. Categorize your expenditures.
c. Distribute funds to meet needs and obligations.
d. All of the above
d. all of the above
Money paid out of pocket before insurance covers the remaining costs is know as:
Deductible/ Co-Pay