Finance Quiz

1. What is a budget?
A plan for managing your money.
A list of items you want to buy.
A record of all your expenses.
2. What is the purpose of a budget?
To help you save money.
To help you achieve your financial goals.
To limit your spending.
3. What is a zero-based budget?
A budget where you allocate all your income to specific categories.
A budget where you only spend money on essentials.
A budget where you spend all your money each month.
4. What is the 50/30/20 budget rule?
A budget where you spend 50% of your income on housing, 30% on food, and 20% on transportation.
A budget where you spend 50% of your income on entertainment, 30% on travel, and 20% on shopping.
A budget where you spend 50% of your income on essentials, 30% on non-essentials, and 20% on savings.
5. What is an emergency fund?
A credit card used for emergencies.
A savings account set aside for unexpected expenses.
A loan used to cover unexpected expenses.
6. What is a sinking fund?
A savings account used to save for a specific future expense.
A savings account used to pay off debt.
A budget category used to track regular expenses.
7. What is the envelope budgeting method?
A budgeting method where you only spend money on essentials.
A budgeting method where you use a spreadsheet to track your expenses.
A budgeting method where you put cash in envelopes for specific expenses.
8. What is a budget variance?
The amount of money left over after you pay all your bills.
The difference between your budgeted and actual expenses.
The total amount of money you spend each month.
9. What is a budget planner?
A tool used to help you create and manage your budget.
A person who manages your finances for you.
A financial advisor who helps you plan your budget.
10. What is a fixed expense?
An expense that varies from month to month.
An expense that is only paid once a year.
An expense that stays the same from month to month.
11. What is a variable expense?
An expense that stays the same from month to month.
An expense that varies from month to month.
An expense that is only paid once a year.
12. What is the difference between a want and a need?
A want is something you must have to survive, and a need is something you would like to have.
A need is something you must have to survive, and a want is something you would like to have.
A need is something you want, and a want is something you need.
13. What is the debt snowball method?
A method of paying off debt where you focus on paying off your highest interest debt first.
A method of paying off debt where you make only the minimum payments on all your debts.
A method of paying off debt where you focus on paying off your smallest debt first.
14. What is the 30-day rule?
A rule that requires you to pay off your credit card balance in 30 days.
A rule that requires you to wait 30 days before making a purchase.
A rule that requires you to save 30% of your income each month.
15. What is a financial goal?
A goal to save a certain amount of money.
A goal to spend more money on non-essentials.
A goal to spend all your money each month.