Show:
Lesson 1: Budgeting 101

Lesson 2: Budgeting Strategies

Lesson 3: Budgeting for Your Home

Lesson 4: Budgeting for Transportation

Lesson 5: Budgeting for Food

100

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

His gross pay is $3,000 and net pay is $2,500

100

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating  a $16,000 emergency fund. How long will it take for you to achieve your goal?

  1. 6 months
  2. 1 year
  3. 2 years
  4. 3 years
100

Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

  1. Average rent for an apartment
  2. Food and grocery store options in the area
  3. Employment opportunities
  4. Average cost of Uber, Lyft, or taxi fare
100

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

  1. Dining out at local restaurants
  2. Loan payment on a new car
  3. Expenses for new clothes
100

If you are trying to substantially reduce the amount you spend on food, you should try...


  1. Cooking your own food at home for as many meals as possible
  2. Dining at restaurants more often so you don't waste water doing dishes
  3. Eating more snacks on the go and way fewer meals at home
  4. Drinking more coffee and soda so you are not as hungry for food
200

You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT:

  1. A budget can help you identify any bad spending habits
  2. Using a budget can allow you to work towards your financial goals
  3. Having a budget can help you create an emergency fund
  4. Having a budget is a requirement for obtaining a mortgage
200

All of the following are good budgeting strategies if you want to save money at the grocery store EXCEPT:

  1. Focusing on unit price when comparing similar products
  2. Building a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat
  3. Focusing only on the price when comparing similar products
  4. Preparing a grocery list before you go to the store and avoiding buying items that aren’t on the list
200

You are interested in renting an apartment after graduating college. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT

  1. Proof of employment
  2. A bank account
  3. First and last month's rent
  4. A security deposit
200

Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?


  1. There are several public transportation routes between Greg's apartment and work
  2. The cost of public transportation is less than Greg’s monthly car payment
  3. Greg’s company covers half the cost of his monthly public transportation pass
  4. Using public transportation, Greg’s commute to work one-way is two hours
200

Which of these boxes of cereal has the LOWEST unit price?


  1. Cereal A, which costs $3.20 for a 16 oz. box
  2. Cereal B, which costs $5.00 for a 32 oz. box
  3. Cereal C, which costs $2.50 for a 10 oz. box
  4. Cereal D, which costs $4.50 for an 8 oz box
300

Which one of these expenses most likely represents a VARIABLE cost in someone's budget?

  1. Electricity bill
  2. Rent
  3. Car insurance premium
300

Which description is most accurate for a Zero-Based Budget?


  1. You put every dollar of your net pay into a budget category each month
  2. You spend your checking account balance down to $0 every month
  3. You spend your saving account balance down to $0 every month
  4. You pay every one of your debts down to $0 every month
300

You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates?

  1. Groceries and eating out
  2. Rent
  3. Cell phone bill
  4. Bedroom furniture
300

When living in a rural area, you are most likely to…


  1. Rely heavily on public transportation like buses and trains for daily commuting
  2. Often walk or bike to most destinations due to close proximity of amenities
  3. Frequently use ride-sharing services for everyday travel  
  4. Depend mostly on personal vehicles, such as cars or motorcycles, for transportation
300

All of the following are good budgeting strategies if you want to save money at the grocery store EXCEPT:


  1. Focusing on unit price when comparing similar products
  2. Building a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat
  3. Focusing only on the price when comparing similar products
  4. Preparing a grocery list before you go to the store and avoiding buying items that aren’t on the list
400

Now that Sanjana is done with college, she is trying to decide whether or not she should buy a new laptop for herself. She has made a preliminary list of questions she can ask herself to determine if the new laptop is a need or a want. Which of the following questions would you ELIMINATE from this list?

  1. Can I afford this laptop right now?
  2. Is this the right time to buy this laptop or will it likely be on sale later?
  3. What model laptop is trendy right now with people my age?
  4. How am I going to pay for this laptop? If I have to charge it or take out a loan, can I afford the monthly payments?
400

What action corresponds to the advice "Pay yourself first?"

  1. Wait until the end of the month to determine how much you have leftover to save
  2. Set aside a fraction of your paycheck into a savings account before you start spending
  3. Spend your regular paycheck on needs and wants but funnel any extra money into saving
  4. Become self-employed so you're paying yourself instead of being paid by an employer 
400

Which of the following is TRUE about a lease agreement?


  1. A lease is an agreement between you and your roommates that you submit to the apartment owner.
  2. You never have to pay any fees when you sign a lease. If you do, that means it is a scam.
  3. A lease often has information about your prior housing experience; it's a record that the apartment owner can use to see if you are a good candidate
  4. A lease is an agreement that includes details about rent, apartment policies, vacating, etc.
400

Janine is considering what auto costs she is going to have after buying a new car. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership?

  1. Yes, these are the three costs she should expect to pay once she is a car owner
  2. No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.
  3. No, she needs to factor in other costs such as maintenance, emergency repairs, etc.
  4. No, she does not need to include the cost of gas as it is covered under her auto insurance policy
400


Danaisha does all her grocery shopping at organic markets and has a monthly grocery bill of $325. Charles says that Danaisha is wasting her money on wants instead of focusing on needs. He buys in bulk, uses coupons, and shops at Save-More for a monthly bill of $195. Who's budgeting correctly for food?

  1. Danaisha, because she is focusing on her health, which will have a guaranteed payoff in the long run
  2. Charles, because he's taking efforts to save money by focusing on his needs only
  3. Both, because needs vs wants are determined on an individual basis
  4. Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Danaisha should cut her spending.
500

Explain how setting a financial goal(s) can help you create a budget.

Creating financial goals helps you determine your priorities, needs, and wants. This allows you to better proportion your available funds and create a more focused budget that is tailored towards your goals.

500

Which of the following accurately describes the envelope budgeting strategy?


  1. Putting cash for different spending categories into separate envelopes and only spending what's in each envelope
  2. Regularly buying investments like stocks or bonds with a certain amount of money each month
  3. Saving a small part of your income every week to buy something big at the end of the year
  4. Keeping a written record of all of the money you receive and spend in a notebook to see where your money goes
500

A good rule of thumb when budgeting for a home is to expect to make a _______ down payment.


  1. 5%
  2. 10%
  3. 20%
  4. 35%
500

What role does a budget play in managing your personal finances? What steps can you take over time to make sure that your budget works for you?

A budget is a simple yet powerful tool that allows you to keep track of the money you have and where it is going. Keeping a budget can help you work towards and achieve your financial goals.

Steps can include:

  • Track your expenses as you go through the month, not at the end of the month, to see how closely you’re sticking to your budget.
  • Create a monthly budget and regularly evaluate how realistic it is - are you consistently under/overspending in any categories? Make any modifications based on what you observe.


If you experience a life change (you move, get married, have a child, etc.) make sure you revisit your budget so that it reflects these changes.

500

One way the grocery store tricks you into spending more money than you budgeted for is...


  1. Being open early in the morning and late at night
  2. Paying their cashiers and baggers more
  3. Putting high priced items at eye level and lower cost items above or below eye level
  4. Accepting digital and print coupons