Budgeting

Question 1

What type of expense is an example of the cost to drive to and from work?

Revolt · Accepted Answer

a variable expense.

Question 2

Why might variable expenses change a great deal at different times of year?

Revolt · Accepted Answer

Heating and cooling costs might vary considerably.

Question 3

Kerry knows that a new car is in her future.Which would be the best strategy to help her accomplish this goal?

Revolt · Accepted Answer

contribute to a savings account

Question 4

Mindy wants to save money to buy a new couch.Which would be the best strategy for her to accomplish her goal?

Revolt · Accepted Answer

forgo watching movies online or in the theater

Question 5

To create a balanced budget, one must make sure to

Revolt · Accepted Answer

spend less than or equal to income.

Question 6

When a person invests income, he or she

Revolt · Accepted Answer

uses money in a way that will increase its value in the future.

Question 7

From what part of income should someone take savings?

Revolt · Accepted Answer

what otherwise would be discretionary income

Question 8

In order to stay on track for long term financial goals, money for emergency spending should be taken first from your

Revolt · Accepted Answer

discretionary money.

Question 9

Leo’s car broke down, and he must find money in his limited budget to pay the repair bill.Which of the following is the best solution for Leo to handle the unplanned spending?

Revolt · Accepted Answer

Leo forgoes going out to dinner.

Question 10

When should fixed and variable monthly budgeted expenses first be planned?

Revolt · Accepted Answer

at the start of each month

Budgeting Answers

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