Budgeting Quiz Question Title * 1. What is a budget? A sum of money that is expected to be paid back with interest A spending plan using income to meet your expenses and financial goals A record of a borrower’s credit history Money set aside for big, unexpected expenses or emergencies Question Title * 2. True or False: Budgeting allows one to plan for short AND long term expenses. True False Question Title * 3. Which of the following is a MAIN purpose of budgeting? It monitors company growth over a period of time It helps people forecast their monthly income and expenses It tracks daily activities and logs times It eliminates future expenses Question Title * 4. What does the 50/30/20 budget stand for? Spending about 50% of income on needs, 30% on wants and 20% on savings and paying off debt. Spending about 50% of income on wants, 30% on savings and paying off debt, and 20% on needs. Spending about 50% of monthly income on on savings and paying off debt, 30% on needs and 20% on wants. Spending about 50% of income on needs, 30% on savings and paying of debt and 20% on wants. Question Title * 5. What are key traits that all budgets should have? limited and restricting bland and ordinary complicated and hard to understand flexible and personalized Question Title * 6. Which of the following is NOT a benefit of budgeting? It helps an individual better understand their relationship with money It helps an individual save enough for the future It helps raise the amount of money you earn It brings individuals out of debt and stress. Question Title * 7. How often is it reccomended to create a budget? Yearly Monthly Quarterly Weekly Question Title * 8. Which of the following classifies as a "need"? Entertainment Eating out Rent Trendy Clothes Question Title * 9. Which of the following classifies as a "want"? Electricity and gas bills Basic groceries Insurance Gym membership Question Title * 10. True or False: Savings are an essential part of every budget. True False Done