Challenge Round
Budgeting Basics
Goals
Income & Expenses
Wants vs. Needs
100

Give one example of fixed income

Salary, pension, Social Security

100

What is Zero-Based Budgeting?

(Every dollar has a job, Income – Expenses = 0)

100

What is a personal goal?

Life, Hobbies, Health

100

What is income?

(Money earned)

100

Give one example of a gray-area expense.

(Phone, internet, etc.)

200

Give one example of variable income

Tips, commission, freelance)

200

What is the Envelope System? 

(Divide cash into envelopes for categories)

200

What is a financial goal?

(Related to money: saving, earning, investing

200

What is an expense?

(Money spent)

200

Is food a want or a need?

(Need)

300

What’s the difference between measurable and time-bound in SMART goals?

Measurable = how much/how many; Time-bound = by when

300

What does “Pay Yourself First” mean?

(Save before spending on other expenses)

300

Short-term vs. long-term: saving for prom dress?

Short Term

300

Give one example of fixed expense.

(Rent, car insurance,

300

Is a new iPhone a want or a need?

(Want)

400

Which expense would you cut first in a budget crisis, fixed or discretionary?

Discretionary

400

In the 50/30/20 rule, what % goes to Wants?

 (30%)

400

What does SMART stand for?

Specific, Measurable, Achievable, Relevant, Time-bound

400

Give one example of variable expense.

(Groceries, gas, utilities

400

Define “need” in financial terms.

 (Essential for survival/living)

500

Why is it harder to budget with variable income?

Income is unpredictable, planning is harder)

500

If you earn $800, how much goes to Needs under the 50/30/20 rule? 

(50% = $400)

500

What does the S in SMART goal stand for?

Specific

500

Give one example of discretionary expense.

(Netflix, eating out,

500

Why is knowing wants vs. needs important when budgeting?

(Prioritization of spending)