Choose wisely. There is only one correct answer to each question.
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1.
A good budget can sometimes allow a months expenses to exceed that months income.
True. A good budget is always balanced, even if some months expenses exceed income, as long as there are adequate inflows from past or future savings.
2.
Saving tiny amounts of money periodically is a nice idea, but is not practical.
False. Saving small amounts periodically can be done by setting them aside and putting them into a savings or investment account, and they can grow substantially over many years.
3.
An effective way to "pay yourself first" so that you dont know your money has been taken out of your paycheck is to set up _______ savings program.
An automatic. The key is to make it automatic so that it has been set aside before you know it.
4.
If you find it difficult to make a habit of diverting small amounts of money into savings, it may help most if you establish _______ first.
A goal. Having a goal gives you some direction for saving.
5.
In the language of retirement plans, the term "pre-tax" means that _______.
Money contributed to the plan is not to be taxed in the current year (until withdrawn). "Pre-tax" means that it is meant to not be taxed currently.