In these difficult economic times, it is important to know how to set up and keep to a budget. Planning, executing and staying on course are all necessary stages for a successful result -- and it can be a very creative and gratifying experience. Take this quiz and learn how you can a plan a budget, stick to it and even earn some extra money in the bargain.
What is the purpose of creating a budget?
to keep track of how much money is coming in and going out
to keep a record of how much your bad habits cost
to keep your family in control
How can working on a budget help a couple’s marriage?
It helps them save up for a second honeymoon.
It reduces their financial stress.
It gives them a common goal.
What are the two most common major purchases?
homes and cars
villas and yachts
bedroom furniture and LCD screens
If you can manage to save some money every month, where should you put it?
in a sock or under the mattress
in a savings account or a mutual fund
in a safe or a safety deposit box
On a budget, why is it better to use cash than a debit or credit card?
There are no extra handling charges.
It takes less time to transact.
It helps to curb your spending.
When living on a budget, how much cash should you take out at a time?
enough for a day
enough for a week
enough for a month
How can cutting out smoking and drinking save you money?
You eliminate cigarettes and liquor from your expenditures.
You don’t have to share cigarettes or buy rounds for others.
You have more energy to go comparison shopping.
In a household, who should be responsible for sticking to the budget?
the man of the house
the woman of the house
the whole family
If you have debts on several credit cards, how should you pay them?
Pay as much as you can on the one with the highest interest and the minimum on the rest.
Pay the minimum on each of them every month.
Pay the lowest balance in full and the minimum on the rest.
Why should you keep your receipts?
to reserve for tax purposes
to track how much you’ve been spending and where
to prove (to anyone who asks) that you spent the amount you said you spent
How does balancing your checkbook help you stay on budget?
It shows you how much money you have.
It keep you focused on financial matters.
It alerts you to possible costly clerical errors.
Where can you look to find expenses you can cut?
Look through your receipts
Look through your spouse’s pockets.
Look through magazines
What can help you refrain from dipping into your savings?
putting your money in an offshore investment
putting your money in a safety deposit box
putting your money in a CD or other type of long-term account
What are discretionary expenses?
money used for things you could live without
money used for necessities
money used for emergencies
What could help you save on health care expenses?
doing exercise at home instead of at a gym
cutting out bad habits
walking to work instead of driving
Is it economical to pay the minimum on your credit card every month?
To track your expenses, what should you do in conjunction with saving your receipts?
Write down the places where you spend money.
Make a file folder for them and keep them handy.
Review them with your family once a week.
When should you balance your checkbook?
every time you write a check
every time you get a bank statement
every time you’re tempted to buy something extravagant