Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
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.
Choose wisely. There is only one correct answer.
A goal. Having a goal gives you some direction for saving.
2.
In a budget, the key to successful economizing is _______.
Choose wisely. There is only one correct answer.
Setting goals and prioritizing them. The key to successful economizing is setting goals and prioritizing them.
3.
A good budget can sometimes allow a months expenses to exceed that months income.
Choose wisely. There is only one correct answer.
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.
4.
Tax-deferral means _______.
Choose wisely. There is only one correct answer.
You don't pay taxes on your retirement earnings until you withdraw them. Tax-deferral means your earnings are sheltered, though you may still be taxed on your contributions and on your savings when you withdraw them.
5.
The concept of paying yourself first involves setting aside money from your paycheck _______.
Choose wisely. There is only one correct answer.
Before you pay your other expenses.