Budgeting
Should 50%, 30%, or 20% be allocated for needs?
50%
Maximum amount of credit you can use on a credit card?
A. Line of credit
B. Bank loan
C. Credit limit
C. Credit limit
A. Saving
B. Spending
Tax paid by consumer when buying goods or services?
A. Property tax
B. Sales tax
C. Income tax
B. Sales tax
A fund set aside for emergency expenses like medical bills?
A. Income Fund
B. Emergency Fund
C. Expense Fund
B. Emergency Fund
The score showing your credit worthiness?
A. Credit limit
B. Credit loan
C. Credit score
C. Credit score
When you invest money and it earns interest on principal and accumulate interested?
A. Compound interest
B. Simple interest
C. Variable interest
A. Compound interest
Taxes taken by paycheck directly to federal government?
A. Property tax
B. Sales tax
C. Income tax
C. Income tax
Type of budgeting tracking all your income and expenses to make sure you don't overspend?
A. Zero-based budgeting
B. Value Proposition budgeting
C. Activity-based budgeting
A. Zero-based budgeting
Name of paying off debt by tackling smallest balance first then going up?
A. Debt snowball method
B. Debt avalanche method
C. Balance transfer
A. Debt snowball method
Common type of investment by purchasing small pieces of a company?
A. Mutual funds
B. Stocks
C. Bonds
B. Stocks
Tax to generate revenue at local level for infrastructure and schools?
A. Property tax
B. Sales tax
C. Income tax
A. Property tax
A budgeting rule dividing your income into needs, wants, and savings?
(Hint: Three different percentages)
50/30/20 rule
Using credit for every day purchases and paying it off later often with interest?
A. Debit card debt
B. Credit card debt
C. Insurance
B. Credit card debt
Low risk interest bearing securities issued by governments or corporations?
A. Mutual funds
B. Stocks
C. Bonds
C. Bonds
Amount you are paid before any tax deductions?
A. Net income
B. Pre-income
C. Gross income
C. Gross income
Budget method where you record every small expense utilizing an app or spreadsheet?
A. Expense Tracker
B. Zero-based budgeting
C. Activity-based budgeting
A. Expense Tracker
Financial document tracking your credit history?
A. Income statement
B. Cash flow statement
C. Credit report
C. Credit report
A retirement account where you can invest pre-tax dollars?
A. 401K
B. Simple IRA
C. Roth IRA
A. 401K
Tax deducted from paycheck to fund Social Security and medicare programs?
A. Corporate Income tax
B. Federal Insurance Contributions Act tax
C. Common Reporting Standard tax
B. Federal Insurance Contributions Act tax