Budgeting Questions for practice

Budgeting Quiz

1. The budgeting process starts with monitoring current spending.
True
False
2. Most short-term goals are based on activities over the next two or three years.
True
False
3. A common long-term goal may involve saving for college for parents of a new-born child.
True
False
4. Rent is considered a fixed expense.
True
False
5. Flexible expenses stay about the same each month.
True
False
6. The final phase of the budgeting process is to:
set personal and financial goals.
compare your budget to what you have actually spent.
review financial progress.
monitor current spending patterns.
7. An example of a long-term goal would be:
an annual vacation.
saving for retirement
buying a used car.
completing college within the next six months.
8. A clearly written financial goal would be:
To save money for college for the next five years
To invest in an international mutual fund for retirement
To establish an emergency fund of $4,000 in 18 months
To pay off credit card bills this year
9. An example of a fixed expense is:
clothing.
auto insurance.
an electric bill.
educational expenses.
10. What is commonly considered a flexible expense?
rent
a mortgage payment
home insurance
entertainment

BUDGETING QUIZ ANSWERS

1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
6. review financial progress
7. saving for retirement
8. To establish an emergency fund of $4,000 in 18 months
9. auto insurance
10. entertainment