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.
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.
2.
Budgeting for a major purchase has many advantages; one of them is that _______.
Choose wisely. There is only one correct answer.
You may be able to avoid the use of debt. Avoiding debt can save you a lot of money, as well as give you time to think over the purchase.
3.
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.
4.
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.
5.
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.