Basics Beginner: Budgeting Made Simple

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.
Budgets can be easily revised by adding and subtracting expenses or income and adjusting amounts associated with specific income and expenses.
Choose wisely. There is only one correct answer.
True. Budgets can be easily revised by adding and subtracting expenses or income and adjusting amounts associated with specific income and expenses.
2.
Wealthy people don't need budgets.
Choose wisely. There is only one correct answer.
False. Wealthy people can overspend just as easily as people in other income groups, so they can benefit just as much from a budget.
3.
A budget never changes.
Choose wisely. There is only one correct answer.
False. A budget is a living document that changes over time and needs to be adjusted as income, expenses and circumstances change.
4.
The first step in financing a major purchase is to ________.
Choose wisely. There is only one correct answer.
Establish a household budget. That way, you can see how and where the planned purchase can be fit into your overall financial picture.
5.
A budget might fail if you include expenses that aren't _______.
Choose wisely. There is only one correct answer.
Realistic. A budget might fail if you include expenses that aren't realistic.